Please Help: Interest on VAT payment
Posted Date : 27-Sep-2013 , 04:37:59 pm | Posted By: Priyanka
Category :
Income Tax | Answers :
1|
Comments :
4| Hits: 6154
|
|
Whether interest on late payment of VAT is admissable expenditure or not? |
 |
|
|
Answers:
|
 Answer by: SUBHASH KUMAR JHA |
| Under section 37 only penalty for violation of law is not allowed as deduction.
u r paying interest not penalty so it will be allowed.
|
|
|
| Comments |
| Posted By : Maninder |
12-Oct-2013, 01:02:16 |
| interest paid on delay payment of vat is compensatory nature and allowable |
| |
| Posted By : Sanjeev Kumar Goel |
02-Oct-2013, 12:58:15 |
| Payment of interest on govt. dues is also a sort of indirect penalty to penalise the person to stop the practice of misusing the govt funds for personal use. If it would not be there then the people will become habitual for misusing the govt. dues for their personal benefits as they will get the interest payment as expenditure according to you.
If the persons here agreeing with the view of interest on VAT as allowable expenditure than what do they think about payment of interest on Income Tax?? If interest payment on Income Tax is not an allowable expenditure then how on VAT it can be an expenditure??
So payment of interest on any govt. dues is not an allowable expenditure. |
| |
| Posted By : Deep Kanwar Singh |
02-Oct-2013, 11:35:04 |
| yes the expenditure on interest on late payment is admissible.
As per section 37 of income tax act penalty for late payment or violation is disallowed
|
| |
| Posted By : DINESH SURYAWANSHI |
02-Oct-2013, 10:02:27 |
| Interest paid on delay in payment of vat is compensatory in nature, and even i totally agree with Mr.Subhash Kumar Jha |
| |
|
|
|
|
