Frequent question: Is interest on late payment of GST allowed as deduction under income tax?

Is GST late fees allowed in income tax?

The late fee for non-furnishing of GSTR-3B for July 2017 to April 2021 has been capped at Rs 500 per return for those taxpayers who did not have any tax liability. For those with tax liability, a maximum of Rs 1,000 per return late fees will be charged, provided such returns are filed by August 31, 2021.

Is interest on late payment of tax deductible?

Interest and/or penalties paid to the IRS are not deductible on your tax return. You can’t deduct fines or penalties you pay to a governmental unit for violating a law. This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal).

Is interest on late payment subject to GST?

Interest under GST & Calculation

Interest is applicable on late payment of GST liability on the net tax liability after reducing the input tax credit claims. The interest has to be paid by every taxpayer who: Makes a delayed GST payment i.e. pays CGST, SGST or IGST after the due date.

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Is GST late fees disallowed?

Section 40(a)(ii) only deals with the amount in relation to the rate of tax levied on profits and gains from business or profession. Therefore, the GST late fee will not be disallowed under sec 40(a)(ii).

How are late fees calculated?

To calculate the interest due on a late payment, the amount of the debt should be multiplied by the number of days for which the payment is late, multiplied by daily late payment interest rate in operation on the date the payment became overdue.

What is the late fee for Gstr 3B for March 2020?

Period: GSTR-3B pending for Months July 2017 to January 2020, May 2020 to July 2020 (For Turnover more than Rs. 5 Crore), February 2020 to July 2020 (For Turnover equal to or up to Rs. 5 Crore) – Maximum Late Fees capped to Rs. 500/- per return filed between 1/7/2020 and 30/09/2020.

How much interest does IRS charge on late taxes?

Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full. The interest rate is determined quarterly and is the federal short-term rate plus 3 percent. Interest compounds daily.

What is the penalty for paying payroll taxes late?

Late Filing

If your required payroll tax deposit is between one and five days late, the IRS charges your business a penalty of two percent of the required payment. Deposits made between six and 15 days late have a five percent penalty and a ten percent penalty for deposits more than 16 days late, plus interest.

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Can we charge GST on interest income?

Under the GST regime, assessees are required to obtain registration under the GST law based on their aggregate turnover. There is a threshold exemption provided to all taxpayers (suppliers of goods and services).

Is interest on loan subject to GST?

As per the definition of Goods given u/s 2(52) and definition of services given u/s 2(102) of CGST Act, 2017 money is excluded. As per this if we provide loan to someone then this is not taxable since this is just a transaction in money.

What happens if you don’t pay GST late fees?

For late filing

The late fee is Rs. 100 per day per Act. … Along with late fee, interest has to be paid at 18% per annum. It has to be calculated by the taxpayer on the tax to be paid.

How can I reduce my GST late fees?

To help the Corporate Industries and small businesses, Finance Ministry notified the GST AMNESTY SCHEME FOR GSTR 3B LATE FEES in their press release to provide relief to small taxpayers. Amnesty scheme 2021 has been recommended for reducing late fee payable by small taxpayers & medium-sized taxpayers.

Is TDS late fees disallowed under income tax?

As per section 271H(3) no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied : The tax deducted/collected at source is paid to the credit of the Government. Late filing fees and interest (if any) is paid to the credit of the Government.

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