Interest on Delayed payments

 it is not included in amount of purchase

but

i dont have any case law

i will try to search for that

tat would b really helpfull........ thanx sumit

No , its not included in purchases .

Interest so paid is compensatory in nature ,will be debited to P& L

If for Income Tax purpose : deduction u/s 37(1) is allowed , TDS provisions apply 194A

I think Rajeev is right in this regard. It can be allowed as per sec 37 .....