Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 682 - MADRAS HIGH COURTInterest received on delayed payment to be added in taxable turnover or not - Whether the interest received by the petitioner from its customers for belated payment should be added in the taxable turnover for levy of tax – Held that:- Certain goods were sold and delivered by the petitioner based on the invoices raised - on these sales, payments were received by the petitioner belatedly from the buyer - therefore, interest was charged - the buyer agreed to pay interest for the belated payment in the very same invoice and there was no independent agreement – in L & T McNeil Limited Versus State of Tamil Nadu [1990 (6) TMI 195 - MADRAS HIGH COURT] it has been held that interest has to be linked to the payment of delivery and they would form part of sale consideration - the buyers have agreed to pay interest for the belated payment in the very same invoice and not under an independent agreement - there is no independent agreement on interest, as rightly pointed out by the Tribunal - when the invoice of the petitioner contemplates interest on delayed payment, the Tribunal was justified in including the same in the taxable turnover – thus, no substantial question of law arises for consideration – Decided against petitioner.
|