Is interest on delayed payments made to creditors of purchases, included in the purchases? If so can u plz state any citations of the case laws stating the above........
Thanks
Sumit Jain
(CA)
(4760 Points)
Replied 19 October 2009
it is not included in amount of purchase
but
i dont have any case law
i will try to search for that
Ashwini
(Article Assistant)
(37 Points)
Replied 19 October 2009
tat would b really helpfull........ thanx sumit
Rajeev
(www.rkmco.com)
(985 Points)
Replied 20 October 2009
No , its not included in purchases .
Interest so paid is compensatory in nature ,will be debited to P& L
If for Income Tax purpose : deduction u/s 37(1) is allowed , TDS provisions apply 194A
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 20 October 2009
I think Rajeev is right in this regard. It can be allowed as per sec 37 .....
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