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?
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?
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.
SSGS and Associates
Chennai
CA Inter
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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O P Bagla & Co LLP
New Delhi
CA Inter
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Rahul Dang & Associates-Chartered Accountants
Pune
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