Disallowed

This query is : Resolved

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Ninad

Ninad (Querist)
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27 September 2015 whether interest on service tax and interest on vat are allowable under 44 ab audit

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 September 2015 Both are allowable expenditure.

Interest is compensatory in nature and hence allowable as business expenditure. Penalty is for contravention of the provisions of an act and,therefore, not allowable as a business expenditure.

See:

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=788

http://www.taxindiaonline.com/RC2/print_story.php?newsid=10324