Whether interest paid on late payment of VAT is an allowable expense for the purpose of Income Tax ?
Please reply..
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Interest Paid on Vat allowable ?
Replies (5)
not allowed
interest is nothing but a fine ,any kind of fine or penalty is not allowable as deduction
| Originally posted by :Gowrish Baliga B. | ||
| " | Whether interest paid on late payment of VAT is an allowable expense for the purpose of Income Tax ? Please reply.. |
" |
Interest on late payment was like a penality so not allowed as expenditure
Interest on the arrears of Sales tax is compensatory in nature and is allowable as deduction. Lachmandas Mathurdas Vs CIT, 254 ITR 799 (SC)
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