is interest on overdraft taken for payment of sales tax an allowable deduction?????????
plz reply
Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
06 January 2009is interest on overdraft taken for payment of sales tax an allowable deduction?????????
plz reply
CA Sudhir Halakhandi
(PRACTICING CHARTERED ACCOUNTANT)
(13401 Points)
Replied 06 January 2009
YES IT IS NORMAL BUSINESS EXPENDITURE AND IT IS ALLWABLE SECTION 36(1) (iii) OF INCOME TAC ACT,1961.
The condition are as under:-
1. The assessee must have borrowed money.
2. The money borrowed must have been used for purpose of business.
3. Interest is paid or payable on such borrowing.
- ca sudhir halakhandi
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 06 January 2009
is the interest on same ovedraft taken for payment of income tax allowable..............plz reply thanks for the earlier one
R.Suresh
(Sr. Executive)
(394 Points)
Replied 06 January 2009
Yes, it is allowable expenses for the income Tax Act u/s 36 (1).
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 06 January 2009
Interest on O/D for payment of St is allowable whereas on IT it is disallowed.
sandeepverma
(don't make exuse for study)
(304 Points)
Replied 07 January 2009
yes dear this is a normal exp which allowed under sec 36(I)
but all condition must be full fill
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