ST an allowable expense?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 service tax is paid by asssessee as service receiver. whether such service tax paid is an allowable expense? if interest was paid on the same whether the same is allowable?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

22 July 2010 Yes service tax is an allowable expenditure in the hands of the recepient.

There would not be a case where interest on service tax would be paid by the service recepient.

However still the same is allowable.