A Pvt Ltd has paid Interest on late payment of Service Tax. Is this an allowable expenditure under Income Tax Act considering it has Income from Business/Profession?
Sathya Sankeerth K N
(Chartered Accountant)
(429 Points)
Replied 19 March 2014
Dear Yash,
Interest on late payment of service tax is a claimable expense for Income Tax as it is not penal in nature. And delay is because of want of funds normally and the tax is paid once the funds are made available. Hence as per me interest is an allowable expense.
CA Mukesh Choudhari
(xyz)
(153 Points)
Replied 19 March 2014
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