Interest on income tax

interest on income tax is disallowable expense....do not claim is as expense while calculating income tax layable for the year

Dear Daval,

Thanks for the reply.

But can you please explain in detail. As i aware that if interest on income tax which debited to profit and loss acount is disallowable.But if we adjsut such interest against outstanding provision for income tax payable. Do we still have to add back in income computation as such interest is not debited  in computation of income.

 

what had been discribed by you regarding the accounting treatment is fundamentally not true....in my opinion interset layable on income tax has been accounted for under the head finance cost under sub head other interest paid...as per me the accounting treatment of adjusting it against ohtstanding provision for income tax is not as per the suggested accounting treatment

Hi,

Thanks and can you Specifically point out the deviation from accounting statdard or convention.

 

 

Hi,

Thanks and can you Specifically point out the deviation from accounting statdard or convention.

 

 

Hi,

Thanks and can you Specifically point out the deviation from accounting statdard or convention.

 

 

this treatment is not as per AS it is as per GAAP