Can I claim penalty & fines paid to the Govt.Authorities other than I.T.Dept as an expenses if yes upto what extent and also we had paid huge amount of penalty on behalf of our customer which will be reimbursed by oure customer later on pls tell me the accounting entries for the same.
29 April 2009
Penalty is for contravention of the provisions of law and,the levy is not compensatory,therefore not deductible as a business expenditure.
CAclubindia
