PGBP
This query is : Resolved
17 September 2010
Whether Interest paid on VAT/Sales Tax is allowed as an expense?
Aditya Maheshwari
(Expert)
17 September 2010
Interest paid on sales tax arrears is deductible - Interest paid by the assessee to the Sales-tax Department on arrears of sales tax is an admissible deduction under section 37(1) - Lachmandas Mathuradas v. CIT [2002] 254 ITR 799/122 Taxman 828(SC)/CIT v. Western India State Motors [1987] 167 ITR 395 (Raj.)/CIT v. Western Indian State Motors [1988] 174 ITR 116 (Raj.).
Praveen Sharma
(Expert)
18 September 2010
agree with Aditya.
Regards
P
Regards
P
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