Assessable value: interest excluded from profit percentage for captively consumed goods, interest treated as expense not added. Interest is a charge for borrowed funds and is to be treated like any other item of expense; expenses such as interest on loans and depreciation do not form part of the profit before tax. It follows that interest should not be added for arriving at the profit percentage when determining the assessable value of goods captively consumed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Assessable value: interest excluded from profit percentage for captively consumed goods, interest treated as expense not added.
Interest is a charge for borrowed funds and is to be treated like any other item of expense; expenses such as interest on loans and depreciation do not form part of the profit before tax. It follows that interest should not be added for arriving at the profit percentage when determining the assessable value of goods captively consumed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
