Custom duty fine and interest

Others 1185 views 1 replies
Custom dept. impose fine & interest for late payment of import custom duty.

My queries below

whether fine & interest are allowable as deduction from business taxable income

If yes

Can this expenses merge as custom duty

or accounted separately as fine & interest
Replies (1)

In India, the Income Tax Act allows deduction of customs duty, fine, and interest paid on late payment of import customs duty, but with certain conditions:

1. _Customs duty_: Allowable as a deduction from business taxable income.

2. _Fine and interest_: Allowable as a deduction, but only if: - Paid during the previous year (relevant to the assessment year). - Relatable to the business or profession. - Not capital in nature.

Accounting treatment: -

_Customs duty_: Part of the cost of goods imported (inventory) or treated as a separate expense (if not inventory-related). -

_Fine and interest_: Treated as separate expenses, not merged with customs duty. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details