sales tax penalty
Phalguni Khilar (45 Points)
09 December 2017
sales tax penalty is an allowable deduction in pgbp or not?if yes then why and if no then why?
Phalguni Khilar (45 Points)
09 December 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(175687 Points)
Replied 09 December 2017
THE INTEREST PAID ON LATE PAYMENT OF SALES TAX / VAT IS AN ALLOWABLE EXPENDITURE.
BUT ANY PENALTY PAID FOR NON- FILING OF SALES TAX / VAT RETURN ETC. CANNOT BE CLAIMED AS EXPENSE.
SECTION 37 OF I.T. ACT SPECIFIES ANY EXPENSE IS ALLOWABLE ONLY IF " NOT INCURRED FOR ANY PURPOSE WHICH IS ANY OFFENCE OR PROHIBITION BY ANY LAW"
(ANY KIND OF PENALTY OR FINE PAID BY THE ASSESSEE IS DISALLOWED, THOUGH SOME CONTRADICTORY CASE LAWS EXIST)
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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