Tax Audit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2011 Whether interest paid on late payment of Income Tax, VAT, Service tax etc amounts to fine/penalty. Whether it has to be reported in Tax audit report and if yes under which point.

Whether the above interest is allowable as business expenditure.

CA.Krishna

CA.Krishna (Expert)
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14 March 2011
late payment of IT interest is disallowed exp. rest are allowable exp.

fine/penalty for non compliance of Govt. taxes are always diallowable exp. It has to be reported in clause 17 (e)and (f) of FORM 3CB

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2011 Please let me know whether interest paid on late payment of VAT or service tax can be regarded as fine/ penalty and be reported in tax audit report.