Tag Archives: Accrual Basis

Overdue charges on EMI default taxable on receipt basis: HC

Facts of the Case Assessee was a non-banking company entered into a lease agreement with its customers. One of clauses in agreement provided for if monthly instalments(EMI) were not paid, it would carry additional finance charges(AFC) or overdue charges in prescribed rate .Assessee maintained its accounts with respect to AFC charges under cash/receipt system for… Read More »