int on tds and vat allowable or not
This query is : Open
22 June 2016
hi experts
i want to know interest paid on delayed deposit of TDS and vat is allowable in IT act or not if it is not then under which section
thanx in advance
22 June 2016
Interest on TDS is levied under section 201(1A) of the Income tax Act,1961. The
said expenditure will not be allowed as a business expenditure.
Citation: Madras high court decision
in CIT V Chennai Properties & Investments Ltd reported in 239 ITR 435
said expenditure will not be allowed as a business expenditure.
Citation: Madras high court decision
in CIT V Chennai Properties & Investments Ltd reported in 239 ITR 435
22 June 2016
Interest on late payment of VAT is compensatory in nature and hence allowable as business expenditure.
In 'Lachmandas Mathuradas V. Commissioner of Income Tax' - 2008 -TMI - 6074 - Supreme Court the question before the apex court was whether interest paid on arrears of sales tax is penal or compensatory. The apex court held that the said amount was an allowable deduction since it was compensatory in nature.
Also refer the following article in this regard--
http://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=788
In 'Lachmandas Mathuradas V. Commissioner of Income Tax' - 2008 -TMI - 6074 - Supreme Court the question before the apex court was whether interest paid on arrears of sales tax is penal or compensatory. The apex court held that the said amount was an allowable deduction since it was compensatory in nature.
Also refer the following article in this regard--
http://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=788
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
