treatment of interest

This query is : Resolved

Neeraj Paul (Querist)
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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.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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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.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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05 April 2009 i agree with the expert

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CA Anil Jain

CA Anil Jain (Expert)
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06 April 2009 yes it will be reported as expenditure, but it will not be allowed as admissible expenditure while caclculating Income from Businees.

Sanjay Soni

Sanjay Soni (Expert)
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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

Neeraj Paul

Neeraj Paul (Querist)
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07 April 2009 thanks to all for the reply.