Interest on debtors
This query is : Resolved
25 November 2016
case:
Income tax officer is saying that i have to charge interest on the amount due from the debtors.
In reply i said him that i can't charge interest from debtors because it effects our business relation and i have no problem if my debtor pay the due amount after some time. even also i have no written contract with my debtors regarding any payment due to market tradition in my city.
so is there is any answere whichi can give to the income tax officer.
is it is mandatory to charge interest on debtors due amount..
Income tax officer is saying that i have to charge interest on the amount due from the debtors.
In reply i said him that i can't charge interest from debtors because it effects our business relation and i have no problem if my debtor pay the due amount after some time. even also i have no written contract with my debtors regarding any payment due to market tradition in my city.
so is there is any answere whichi can give to the income tax officer.
is it is mandatory to charge interest on debtors due amount..
28 November 2016
It is not mandatory to charge interest on debtors until and unless the same is mentioned in the contract. However, if the debtors are pending for long period, you need to provide for doubtful or bad debts.
28 November 2016
ca amrita ji thank you for your reply.
can you please suggest me any act , section, law which i can show as a proof for this answere.
can you please suggest me any act , section, law which i can show as a proof for this answere.
04 November 2021
It is the usual practice in the business, and no need of any supporting act or case law. The addition if any by AO gets nullified whenever appealed.
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?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- GST ON EXPORT COMMISSION
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
