Demand by service tax demand
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 February 2016
if any service tax demand ,penalty & interest demand by service tax department is allowable if allowable under which section
Demand
Penalty
interest
Demand
Penalty
interest
02 February 2016
From the query it is not clear whether you are asking about allowability under Finance Act 1994 (as amended) or the provisions of Income Tax Act 1961. I am presuming you are asking for the latter clarification. Service Tax being an indirect tax like VAT / CST is recovered from the customer and remitted to the Treasury. Therefore there is no question of allowability of the expense. However, if no money has been recovered from customers and a demand is made and PAID, the demand can be charged to P& L Account as allowable expenses. The same is the case with interest, since the interest is in the nature of cost for delayed deposit of tax - it is not penal interest. However one has to keep in mind that the interest only to the extent of 18% p.a. is allowable - since after 6 months the rate is 24% p.a. and after 12 months it is 30% p.a.. Penalty paid is not an allowable expense.
02 February 2016
1. service tax and interest is an allowable expenditure u/s. 37(1) of the Income tax Act,1961.
2. penalty is not an allowable expenditure as per the above said act.
2. penalty is not an allowable expenditure as per the above said act.
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
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Refund of AY 22-23
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Inventory of finished goods
- TDR receipts for agreement holder
- Confusion around Form 26QB fields
- Sale of property furniture sale
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Refund AY 2012-13 and 2013-14
- DIRECT TAX CODE 2025
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- 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?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
Trending Online Classes
CAclubindia
