TAX AUDIT- Clause 21a

This discussion clarifies whether late fees paid for GST and Professional Tax should be reported under Clause 21a of a tax audit. The consensus is that these are allowable expenses for Profit and Gains from Business or Profession (PGBP) and therefore do not need to be shown in Clause 21a. Clause 21a is intended for disallowed expenses, such as interest on TDS, or expenditure of a capital nature that has been debited to the profit and loss account.