I want to know under which schedule of P&L A/c we should show the interest exp relatin to late payment of income tax, TDS, Service Tax, Electricity. I think we should charge it under the schedule Administrative Exp, but my senior is of the view that we should show these exp under schedule "Interest and Finance Chage".
I am not satisfied with him since schedule "Interest and Finance Chage" relates to exp relating to long term projects.
12 November 2011
It will be included under Administrative expenses.
"Interest and finance charges" should interest(overdraft account) that we pay to bank/ on securities issued/ loans taken/ discounting charges/ etc. It does not necessarily mean "financing charges for long term project". Even day to day financing cost will come under this head.
CAclubindia
