Interest on direct & indirect tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 January 2013
Can we Debited the Interest on late payment of Direct Tax & Indirect Tax to Profit & Loss a/c ( like TDS & Service Tax)?
14 January 2013
For direct tax , u can not, for indirect tax u can.
As it will be personal exp. in direct taxes, but u can debit in indirect taxes.
As it will be personal exp. in direct taxes, but u can debit in indirect taxes.
14 January 2013
I agree with the expert.
.
According to Section 40(a)(ii) Income Tax , Interest Payment in relation to Income Tax etc are not deductible.
.
Similarly wealth tax is not deductible vide Section 40a(iia).
.
Where as indirect taxes are generally deductible U/s 37(1) and interest on such tax payments , being compensatory in nature
is also allowable as deduction against the profits.
.
So direct expenses are, if debited to P&L A/c, required to be added back in the profit at the time of computation of Income.
.
According to Section 40(a)(ii) Income Tax , Interest Payment in relation to Income Tax etc are not deductible.
.
Similarly wealth tax is not deductible vide Section 40a(iia).
.
Where as indirect taxes are generally deductible U/s 37(1) and interest on such tax payments , being compensatory in nature
is also allowable as deduction against the profits.
.
So direct expenses are, if debited to P&L A/c, required to be added back in the profit at the time of computation of Income.
Message likes :
1 times
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
- GST Regis.
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- Tax on capital gains revoked us 54f
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- HSN Details in IFF/GSTR-1 & in GSTR 9
- 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
Trending Online Classes
CAclubindia
