Whether intt. on late payment of excise duty, is disallowed?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2011 Please suggest whether interest paid for late payment of Excise Duty & Land Lease premium to State Govt. will be disallowed under IT Act.

Whether such Intt. payment require to report in 3CD??? If yes then in which clause it will fall????

Please reply soon

Very Good evening

U S Sharma

U S Sharma (Expert)
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18 September 2011 if such amounts are accounted within the main head of p/l account as excise duty / land lease premium, then no need to report, but if the amount is shown separate in P/L as interest then it must be reported and disallowed.

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2011 Dear Sharmaji

Please read out the query and give the complete answere.

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CA Deepak S

CA Deepak S (Expert)
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19 September 2011 Interest paid for the late payment of excise duty is an allowable expenditure. In my opinion it is not required to be mentioned in 3CD

Land Lease Premium is normally paid as a lump sum amount at the beginning of the lease term and it is a capital expenditure.