TMI BlogOver due Interest received from customerX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. Regards Vivekanandhan - 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by reason of sale. Therefore 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 Rajago ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... palan Sir. Excise duty is not applicable. Service tax is not applicable. Thanks. - Reply By Vivek anandhan - The Reply = Sir, Noted and thanks - Over due Interest received from customer - Query S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tarted By: - Vivek anandhan Dated:- 4-7-2016 Central Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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