Provision for interest and penalty under service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2016 whether provision for interest and penalty not paid before or on date filing of ITR under section 43 B then whether it will be allowed or disallowed.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 April 2016 Section 43b is not applicable for interest and penalties... Section 37 is relevant... And if penalties and interest are in the nature compensatory then it will allowed... I. E. For offence or anything prohibited by law will not allowed

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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24 April 2016 If the interest and penalties are claimed as expenses, then interest - not of a penal nature is allowable as expense. Penalties are not allowable as expenses and hence the provisions of Section 43 B would not be applicable. In case of interest is the same is claimed as an expense, the non payment of the same can attract section 43 B since it is in nature of a tax,duty or cess payable to the government.

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