Sec 43 b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2010 Whether service tax payable at the time of balance sheet will be disallowed u/s 43 b if it is not paid upto 139(1)

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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22 February 2010 if service tax payable is not paid up to Date of Filling of IT return then it is disallow.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 February 2010 As per section 68 of The Finance Act,1994 read with rule 6 of service tax Rules, service tax becomes payable to the credit of the central government only on receipt from client. Service tax though billed but not received not having become payable to the credit of the government, by virtue of the above provisions, could not be disallowed under section 43B of the Income tax Act,1961.

Citation :- ACIT Vs. Real Image Technologies Pvt Ltd. 9 DTR 261 (Chennai-Tri).