Section 43b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2015 Dear experts,
the provision of ST was made on 31/3/2015
but the assessee has not made the payment of this ST provision yet, his account is audited, plz let me know weather this provision will be disallowed and be add in the sale or not.

thanks & regard
Kapil sharma

Amol S Joglekar

Amol S Joglekar (Expert)
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27 September 2015 Assessee has to make the payment before filing the return of income. If the assessee is NOT making the payment, ADD back the provision.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2015 Dear sir
what's your means by add back the provision. actually this provision is still shown in balance sheet....

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 while doing the computation, the said amount will be disallowed u/s 43 B

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2015 sir. after the computation can we add this provision again or not

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 You are not giving any reference of DATE?

Assuming you are on 28/09/2015 and the status is
01. Return is NOT yet filed
02. Provision is made in books as on 31/03/2015
03. Service Tax is NOT yet paid as of today and the assessee is NOT going to pay it before filing of the return.

Now under such circumstances, the said povision shall be added back.

Please let me know if you have some other ASSUMPTIONS in your query and MIND.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2015 sir. i have query is my mind that if this provision will be disallowed then the computation is not to be effected by it because this is the provision of taxation not the expenditure provision. plz let me know if it become disallowed then how it will effect in income tax and also tell me where it will be added back.......

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 My dear friend, how do you make a provision without DEBITING any account?????????

Debit ???????????????
Credit Provision for Service Tax.

This is how provision is made in books of accounts.

Now this "Debit ????????????" is disallowed.

Let me have your views

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2015 sir, we have passed the entry on 31/3/2015,
party dr.....
credit service charge...
credit ST payable.......

but while the computation weather this entry become reverse ie.
ST payable DR.....
and which account will be credit

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 Under the circumstances stated as above by you,
there is NO need to pass any entry in the books of account. Let the books be as it is. Let ST payable account show a credit balance.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2015 Ok sir.... thanks a lot.......

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 You are most welcome.
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