sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Continuing Prof. Edu. »
  Discussion On Charitable And Private Trust And Discussion On Section 68 Of Income Tax Act,1961
 GST Audit & Annual Returns Plus Tax Audit Changes
 GST Audit And Annual Return
 Discussion On Charitable And Private Trust And Discussion On Section 68 Of Income Tax Act,1961
 GST Audit And Annual Return Under GST
 Workshop On Goods And Service Tax
 CPE Events 3rd December - 8th December 2018
 Seminar In Annual Return & Audit Under GST With Reconciliation Under 9c Under GST
 NFRA Rules and GST Audit (Form 9C)
 Seminar On Notice Under Section 147/148 Under Income Tax Act AND TDS/TCS & Input Tax Credit Under GST
 Recent assessment in Co Act & related issues And Assessment & E-Assessment of Income Tax & related issues.

Interest on Delayed Payment of VAT and TDS is Compensatory in Nature ITAT allows Deduction
October, 12th 2018

The Cochin bench of Income Tax Appellate Tribunal (ITAT) restored the decision of CIT(A) and held that interest on delayed payment of VAT and TDS is compensatory in nature and also deleted the disallowance.

The bench comprising Judicial Member George George K and Accountant Member Chandra Poojari were held so while considering the case of The Income Tax Officer versus M/s.Lakshdweep.

The sole issue raised by Revenue before ITAT was against the order of first appellate authority regarding the interest on delayed payment of VAT and TDS are allowable expenditure. In instant case AO disallowed certain amount of interest on delayed payment of VAT and TDS and claimed the same as penal in nature which cannot be termed as business expenditure.

On appeal before first appellate authority , the CIT (A) completely deleted the disallowance and held that interest on delayed payment of VAT and TDS is not in the penal nature.

The bench heard the rival submissions and perused the documents and observed that “the CIT(A) has correctly deleted the disallowance made for the interest expenditure claimed on delayed payment of VAT and TDS.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions