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GST LATE FEES

Shubham Sundesha (15 Points)

30 July 2019

Can we claim GST Late fees paid as an expense under Sec 43B of Income Tax Act?

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7 Replies

Shweta Gupta (Assistant Manager) (224 Points)
Replied 30 July 2019

43B is for expenses which are allowed when you paid on or before due date of filling of return.

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Shubham Sundesha (15 Points)
Replied 30 July 2019

Thanks for your reply. But if I have paid GST Late Fees during the same Financial year for which it is incurred, so will the late fees allowed as an expense in Income Tax?

Kapadia Pravin (17259 Points)
Replied 30 July 2019

it's allowable

Shweta Gupta (Assistant Manager) (224 Points)
Replied 30 July 2019

in my opinion late fee has nature of penalty and penalty is disallowed under income tax

Pikan Maity (50 Points)
Replied 30 July 2019

Late fees is a disallowed exp.. bcz it's a one type of fine

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Shubham Sundesha (15 Points)
Replied 31 July 2019

As per Section 43B

Notwithstanding anything contained in any other provision of this Act*, a deduction otherwise allowable under this Act in respect of—

a) any sum payable by the assessee by way of tax, duty, cess or fee, (by whatever name called, under any law for the time being in force);

Here as per the wordings of Section, clause (a) covers the term "fee". So does that mean we can cover late fees into this term and claim late fees expense?