treatment of interest
This query is : Resolved
05 April 2009
For eg say: we have deposited the tax of rs.2 lacs out of the 5 lacs of self assessment tax and we deposited the remaining 3 lacs after december with interest of say rs.10000/-.My question is how the interest part will be treated in the books?will it be treated as an expense or not?if yes or no then why? please clarify.
05 April 2009
Interest paid to the deparment will be shown as expenditure in the books of accounts. Beacause it is a loss to the company we have to debit it to expenditure.
05 April 2009
i agree with the expert
06 April 2009
yes it will be reported as expenditure, but it will not be allowed as admissible expenditure while caclculating Income from Businees.
06 April 2009
the interest is in the nature of expenditure to the company therefore will be treated as expenses in finanacial statement but the same will not be available as admisable expenditure for calculating Income Tax liability
07 April 2009
thanks to all for the reply.
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