An item in the P&L A/c-"Interest on late payment of sales tax''. This is allowed or diallowed as deduction?
What if its interest on late payment of income tax? amd what if its linterest on late payment of any tax other than income tax, fringe benefit tax, securites transaction tax(wherever applicable)???plz reply....thx...Ajay
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the interest paid on delayed payment of sales tax is allowed being compensatory in nature however interest paid on taxes other than income tax,fbt,stt shall not be allowed if such penalty is imposed by act for the violation of any provisions of the act. hence in nutshell what determines the allowability of penal interest is the nature of penalty.
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