Interest whether allowed as expenditure
This query is : Resolved
11 September 2010
interest on late payment of Service Tax wether allowed as deduction or will it be disallowed at the time of computing income.......????
Pls. refer section 40(a),as it was written that interest on "Income Tax" , "Wealth Tax" and "FBT" is not allowed as deduction but interest under any other law is allowed.
Pls. refer section 40(a),as it was written that interest on "Income Tax" , "Wealth Tax" and "FBT" is not allowed as deduction but interest under any other law is allowed.
11 September 2010
Interest on late payment of service is allowed because it is compensatory nature, not penal nature.
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11 September 2010
But rule 7C of the Service tax Rules,1994 has used a word penalty ,once in the 3rd proviso thereto ,which may lead to a dispute regarding allowability.
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11 September 2010
sir,correct me if i m wrong...
rule 7C of the service tax rules,1994 is all about late filling of "Service tax Return"
and Section 75 of service tax says interest on delayed payment of service tax...
pls,give ur views as it will help me in clearing my concepts...
rule 7C of the service tax rules,1994 is all about late filling of "Service tax Return"
and Section 75 of service tax says interest on delayed payment of service tax...
pls,give ur views as it will help me in clearing my concepts...
11 September 2010
Yes my observation is wrong. I stand corrected and support the view of Bansal Ji.
11 September 2010
great thanxs to
"Mr. Bijendra K. Bansal"
n
"Mr. B. Chackrapani "
but i need more views.......
"Mr. Bijendra K. Bansal"
n
"Mr. B. Chackrapani "
but i need more views.......
11 September 2010
It is an allowable expenditure. Pl see the link http://www.taxindiaonline.com/RC2/print_story.php?newsid=10324
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