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Late fees of income tax and gst

21 February 2024

gst and income tax late fees charges is captial expenses of business or indirect expenses of business please sir and madam kindly clarify that

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 21 February 2024

Indirect expenses....

CA Rashmi Gandhi (Chartered Accountant) (86250 Points)
Replied 21 February 2024

Agreed with Raja PM, claim as Indirect Expenses

Money Money (383 Points)
Replied 22 February 2024

The late fees of income tax and GST are considered as indirect expenses of business1. This means that they are not directly related to the production or sale of goods or services, but are incurred for the general operation of the business. Indirect expenses are usually deducted from the gross profit to arrive at the net profit of the business.

However, you should also note that the late fees of income tax and GST are not allowed as deductions under Section 43B of the Income Tax Act, 19612. This section disallows the sum which are not paid in the financial year as well as not paid before the due date of filing income tax return. Therefore, you should pay your taxes and GST on time to avoid any penalties and interest charges.