Interest paid on ST

penalty, interest and fine paid/ payable under direct taxes is not deductible., however penalty which is compensatory in nature & which is paid for breach of a contract or statue is deductible. if something more is payable than that , then it is not deductible.

Agree with above answer but what are asking about service tax or wat?

it is interest piad on service tax coz S.T. rcvd in the month of jun-10 but show in the II installment ( july-10)

i agree with nagasirisha

not deductible in your case for the purpose of income tax

agree with nagasirisha

if any interest is paid on delayed payments like service tax, excise duty or vat etc is deductible expenditure. Interest on late payment of tds or income tax u/s 234 a,b,c is not deductible and same is added back in computation of income.

Interest on late payment of service tax is allowed u/s 40((a) of income tax act.