Interest paid on duties treated as expenditure or not

[Mathurthi RamKumar]

Dear All,

Greetings..in previous FY we paid interest on duties (excise , service tax and cess). Can we treat this amount as expenditure or not. Any supporting act kindly share me.

Regards

M.RamKumar

[DR.MARIAPPAN GOVINDARAJAN]

In my view it may be treated as expenditure.

[Ganeshan Kalyani]

Interest paid for violation of any law is not a business expenditure . So in my view it may not.

AI Summary

Deductibility of interest on duties: whether such interest is ordinary business expenditure or penal and non deductible.
Whether interest paid on duties (excise, service tax and cess) qualifies as a deductible business expenditure is contested: one view treats such interest as an ordinary business expense and potentially deductible, while another treats interest for statutory violation as penal interest that is not a business expenditure deductible against income.