Is interest paid on Excise duty sales tax allowed???
pls reply its urgent..
thks in advance
sumit jain
(.)
(844 Points)
Replied 04 October 2011
It depends on whether it is Compensatory interest or Penal interest..
Penal interest will not be allowed for Income Tax purposes..
However, Compensatory interest on Excise & Sales tax shall be allowed for Income Tax purposes
Vandana Mulchandani
(Finance Manager )
(9227 Points)
Replied 04 October 2011
Interest paid on Excise and Custom is allowable expenditure. Whereas interest paid of TDS And income tax is not allowable
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