Tax? urgent

correctly said.......

Firstly, any provisions or interest or payments made for direct taxes are not deductible.

Secondly, for indirect taxes, provisions are not allowed, interest on late payments are allowed and penalty which is compensatory in nature is allowed whereas penalty which is penal in nature is disallowed.

Provision for indirect taxes i.e. sales tax, excise duty, service tax etc..are allowed in the A.Y. relevant to the P.Y., provided the payment is being made on or before the due date of furnishing the retunr of Invoice u/s 139(1).  However if the pymt is made after furnishing the return then the deduction is allowed in the A.Y. relevant to the P.Y. in whihc the payment is made..  also interest on late payment of indirect taxes is allowed.  However penal charges are not allowed in case of IDT.

Any provision, interest, penalty in case of Direct Taxes is disallowed under the I-T Act.