Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Central Excise This

A Public Forum.
Acknowledging the Value of Experts.

Contribute Your Wisdom, Shape the Future.
Let Your Experience Guide Others

Submit new Issue / Query     My IssuesMy Replies
A free service.
You may submit an issue for brainstorming also.

Over due Interest received from customer, Central Excise

Issue Id: - 110604
Dated: 4-7-2016
By:- Vivek anandhan

Over due Interest received from customer


  • Contents

Dear Expert

We 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 Interest 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

Vivekanandhan

Posts / Replies

Showing Replies 1 to 3 of 3 Records

Page: 1


1 Dated: 4-7-2016
By:- Rajagopalan Ranganathan

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. Therefore you need not pay any duty on such interest recovered by issue of debit note.


2 Dated: 4-7-2016
By:- Ganeshan Kalyani

Sir, I endorse the views submitted by Sri Rajagopalan Sir. Excise duty is not applicable. Service tax is not applicable. Thanks.


3 Dated: 5-7-2016
By:- Vivek anandhan

Sir, Noted and thanks


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates