treatment of interest

This query is : Resolved

Neeraj Paul (Querist)
Follow

05 April 2009 For eg say: we have deposited the tax of rs.2 lacs out of the 5 lacs of self assessment tax and we deposited the remaining 3 lacs after december with interest of say rs.10000/-.My question is how the interest part will be treated in the books?will it be treated as an expense or not?if yes or no then why? please clarify.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

05 April 2009 Interest paid to the deparment will be shown as expenditure in the books of accounts. Beacause it is a loss to the company we have to debit it to expenditure.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
Follow

05 April 2009 i agree with the expert

CA Anil Jain

CA Anil Jain (Expert)
Follow

06 April 2009 yes it will be reported as expenditure, but it will not be allowed as admissible expenditure while caclculating Income from Businees.

Sanjay Soni

Sanjay Soni (Expert)
Follow

06 April 2009 the interest is in the nature of expenditure to the company therefore will be treated as expenses in finanacial statement but the same will not be available as admisable expenditure for calculating Income Tax liability

Neeraj Paul

Neeraj Paul (Querist)
Follow

07 April 2009 thanks to all for the reply.

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

Rishi Jain

SHUBHANGI GOEL

CA Narender Yarragorla

P.S.Satya narayana

CA Reshma prabhu

Subscribe Now

treatment of interest

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY