Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Interest on Vat Allowed For Deduction?

1926 views

Save Share

Join Us Follow Us Add as Source

Santhosh Poojary

SIEMPRE AHÍ PARA TI

15607 Points Posted on 15 September 2010

Hi All,

Please Confirm me Whether Interest on Vat is Allowed For Deduction?

Waiting For Reply…

Replies (2)

Aditya Maheshwari

CA in Practice

35867 Points Posted on 15 September 2010

Interest paid on sales tax arrears is deductible - Interest paid by the assessee to the Sales-tax Department on arrears of sales tax is an admissible deduction under section 37(1) - Lachmandas Mathuradas v. CIT [2002] 254 ITR 799/122 Taxman 828(SC)/CIT v. Western India State Motors [1987] 167 ITR 395 (Raj.)/CIT v. Western Indian State Motors [1988] 174 ITR 116 (Raj.).

Santhosh Poojary

SIEMPRE AHÍ PARA TI

15607 Points Posted on 15 September 2010

Originally posted by : Aditya Maheshwari
	Interest paid on sales tax arrears is deductible - Interest paid by the assessee to the Sales-tax Department on arrears of sales tax is an admissible deduction under section 37(1) - Lachmandas Mathuradas v. CIT [2002] 254 ITR 799/122 Taxman 828(SC)/CIT v. Western India State Motors [1987] 167 ITR 395 (Raj.)/CIT v. Western Indian State Motors [1988] 174 ITR 116 (Raj.).