Prov for interest on Service tax

This query is : Resolved

ashwini (Querist)
Follow

09 August 2010 Dear sir

Can u pls tell me whether provision for interest on service tax or any other tax is allowable expenses or not as per sec 43B? If yes pls provide the case low, if any or explan.

Thanks

Best regards
Ashwini

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

09 August 2010 INTEREST ON SALES TAX, SERVICE TAX IS ALLOWABLE EXPENSES.
REFERRED CASE LAW
LACHMANDAS MOHURADAS VS CIT (2002)
TRIVENI ENGG WORKS LTD VS CIT (1987)
RUSSEL PROPERTIES (P) LTD VS CIT (1981)

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

09 August 2010 PROVISION FOR INTERST ON DELAY PAYMENT OF SERVICE TAX/ANY OTHER GOVT DUE IS ALLOWABLE EXPENSES IF IT IS DEPOSITED BEFORE DUE DATE.BECASUE IT IS NOT PENAL NATURE, IT IS COMPENSATORY NATURE.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

09 August 2010 https://www.caclubindia.com/forum/details.asp?mod_id=47959&offset=2

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

09 August 2010 Section 43B attracts for provision for interest on service tax if not paid with in the stipulated time. However interest paid on service tax payment is an allowable expenditure as per section 37(1) of the income tax Act,1961.
The following case law may be relied even though delivered in the context of Sales tax interest.
Lachmandas Mathurdas Vs. CIT (2002) 254 ITR 799(SC).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

office docs

Arun Borad

MUNISH KUMAR

RISHI LATTA

CA Aakarsh Jain

Subscribe Now

Prov for interest on Service tax

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Manager- Finance and Compliance

GST CONSULTANCY

Accountant

Senior Executive

GST CONSULTANT