Gowrish Baliga B. (Chartered Accountant) (110 Points)
10 September 2009Whether interest paid on late payment of VAT is an allowable expense for the purpose of Income Tax ?
Please reply..
Nithyanand N L
(STUDENT)
(22 Points)
Replied 16 September 2009
| Originally posted by :Gowrish Baliga B. | ||
| " | Whether interest paid on late payment of VAT is an allowable expense for the purpose of Income Tax ? Please reply.. |
" |
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 16 September 2009
Interest on late payment was like a penality so not allowed as expenditure
Vignesh Killur
(Articled Assistant)
(1666 Points)
Replied 23 February 2011
Interest on the arrears of Sales tax is compensatory in nature and is allowable as deduction. Lachmandas Mathurdas Vs CIT, 254 ITR 799 (SC)
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