interest on delay payment of Service tax
This query is : Resolved
25 June 2010
whether interest on delay payment of service tax is allowed as business expenses or not..? kindly justify the answer with the helf of sections or case laws...
25 June 2010
It is allowable
Interest paid on sales tax arrears is deductible - Interest paid by the assessee to the Sales-tax Department on arrears of sales tax is an admissible deduction under section 37(1) - Lachmandas Mathuradas v. CIT [2002] 254 ITR 799/122 Taxman 828(SC)/CIT v. Western India State Motors [1987] 167 ITR 395 (Raj.)/CIT v. Western Indian State Motors [1988] 174 ITR 116 (Raj.).
Interest paid on sales tax arrears is deductible - Interest paid by the assessee to the Sales-tax Department on arrears of sales tax is an admissible deduction under section 37(1) - Lachmandas Mathuradas v. CIT [2002] 254 ITR 799/122 Taxman 828(SC)/CIT v. Western India State Motors [1987] 167 ITR 395 (Raj.)/CIT v. Western Indian State Motors [1988] 174 ITR 116 (Raj.).
25 June 2010
thanks i got it...
but my query is about service tax and not sales tax....
but my query is about service tax and not sales tax....
26 June 2010
Same rule applies for any taxes, VAT, CST, Service Tax, Excise, Customs.
26 June 2010
The same case can be extended to service tax also.
In income tax we do not have cases for each & every thing. So in such a case we should apply a case which is similar in nature.
In income tax we do not have cases for each & every thing. So in such a case we should apply a case which is similar in nature.
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