Custom duty interest paid
Ajnas (Student) (844 Points)
24 January 2021
custom duty interest paid for delay is disallowed in income tax or not?
4 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 24 January 2021
Any tax, duty, cess or fee paid under any law in force is allowed as a deduction when it is paid- this includes GST, customs duty or any other taxes or cesses paid. Interest paid on these taxes are also eligible for deduction.
Kapadia Pravin
(17264 Points)
Replied 24 January 2021
This is interest paid on delay in payment of custom duty. This is revenue expenditure and hence allowed.
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 25 January 2021
Penalty is disallowed in IT. Since intt is not in nature of penalty it will allowed
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 25 January 2021
There is no disallowance mentioned in Income Tax in respect of Interest paid on Indirect Tax. So, same is allowed .
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