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Deduction PGBP

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Abinash Panda

60 Points Posted on 23 February 2023

🙏
I have taken a loan for my business purpose. When i repay the loan periodically, will i get deduction of principal repayment of the loan ?
Thank you.

Replies (5)

Quick Summary

This discussion clarifies that for business loans under the PGBP (Profits and Gains of Business or Profession) income head, only the interest component of loan repayments is deductible, not the principal. It also delves into GST implications for packing and freight charges, explaining that these services typically attract an 18% GST rate. The advice highlights that composite supplies follow the principal supply's GST rate, while mixed supplies are taxed at the highest applicable rate, suggesting separate invoicing for mixed supplies to ensure correct GST application.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 23 February 2023

No. Only interest amount can be deducted under income head PGBP.

Abinash Panda

60 Points Posted on 23 February 2023

Thankyou sir

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 23 February 2023

My Pleasure.

MPR Sanjay Kumar

1675 Points Posted on 23 February 2023

@ Honourable Dhirajlal sir,......

what is the GST current rate for Packing charges and Frieght charges please explain me elaborately.....

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 23 February 2023

Packing, loading, hauling, unloading, unpacking, and rearranging are all major services. As a result, they impose 18 percent GST on everything.

For more details refer: https://tallysolutions.com/gst/gst-on-freight/

Note::

If the entire supply falls under composite supply, then gst shall be charged at the rate that applies to principal supply... If it is a mixed supply, then the gst rate shall be highest rate of all supplies I.e., 18% But if it is a mixed supply better to raise separate invoices and pay respective gst rate which is applicable for items...