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VAT interest and penalty

SHIVANI KUDTARKAR (512 Points)

05 December 2018

whether VAT interest and penalty is an allowable expense under Income Tax Act

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4 Replies

saurabh sawlani (Self employed ) (2193 Points)
Replied 05 December 2018

yes its allowable under income tax

Khushi Sharma (17 Points)
Replied 06 December 2018

penalty under vat is not allowed under income tax act

TinaNamdev (business) (22 Points)
Replied 06 December 2018

yes its allowable under income tax

Khushi Sharma (17 Points)
Replied 06 December 2018

any expenditure incurred for violation of law i.e. penalty for violation of provisions of vat law in this case, is specifically disallowed under the income tax act. however interest is allowed.
If penalty is allowable please enlighten me, as I'm pretty sure it is not allowed

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