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GST Late Fee

Amit Jain (Proprietor ) (533 Points)

22 June 2020

Whether GST Late Fee is allowable expenditure under Income Tax Act

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58259 Points)
Replied 22 June 2020

No .It's not allowed .

Late filing of return or late payment of GST will be considered as violation of law.So the late will be in the nature of penalty for not filing or paying on time.

Disallowed u/s 40(a)(ii) of Income Tax Act, 1961

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CA Surjeet Negi (Indirect Tax- Consultant) (50 Points)
Replied 22 June 2020

No it's disallowed

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 22 June 2020

Yes... The late fee is allowed as expenditure under income tax.

Lokesh Agrawal (10 Points)
Replied 22 June 2020

Yes, it is allowed to claim business expenditure. As penalty and Fees are different under Income tax Act. it is not due to breach of law. hence, allowed.