Over due Interest received from customer

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....ver due Interest received from customer<br> Query (Issue) Started By: - Vivek anandhan Dated:- 4-7-2016 Last Reply Date:- 5-7-2016 Central Excise<br>Got 3 Replies<br>Central Excise<br>Dear Expert We ....

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....are the manufacturer of excisable goods. Our payment terms with customer is on or before despatch of goods. But some of our customer making payment after despatch of goods. However we are collecting I....

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....nterest through debit note for the days from the despatch of goods. My question is whether we need to pay duty/tax for the interest amount received from customer for overdue payments. Regards Viv....

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....ekanandhan Reply By Rajagopalan Ranganathan: The Reply: Sir, What you are collecting is interest on receivables. Payment of such interest is by reason of late payment and not by reason of sale. The....

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....refore you need not pay any duty on such interest recovered by issue of debit note. Reply By Ganeshan Kalyani: The Reply: Sir, I endorse the views submitted by Sri Rajagopalan Sir. Excise duty is no....

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....t applicable. Service tax is not applicable. Thanks. Reply By Vivek anandhan: The Reply: Sir, Noted and thanks<br> Discussion Forum - Knowledge Sharing ....