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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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