TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
31 August 2011Dear all
Please confirm me, Employees contribution to ESI & PF deducted from salary but not yet deposited by the employer before the due date of the respective act is disallowed U/s36(1)va.
What is the duty of the auditor at the time of preparation of Computation of Income,
Please reply soon
Regards
TRILOCHAN
P K MISHRA
(article)
(49 Points)
Replied 31 August 2011
Dear trilochan
It will be added (employees contribution) in total income of the company.it is now treated as an income of employer( u/s 2(24)(X) ).
thanks
amit
(st)
(111 Points)
Replied 31 August 2011
amit
(st)
(111 Points)
Replied 31 August 2011
TRILOCHAN
(SENIOR ACCOUNTANT)
(698 Points)
Replied 31 August 2011
Dear Amit Jee,
mera auditor bol raha hai, it is the duty of the Income tax officer to addback the expenses. pls confirm me whether he is right. Main kiun apna claint ko parisan karunga........etc.
Law: Sec. 36(1)(va) the amount so deducted but nt credited in the employees account within due date is treated as the income of the employer as per Sec. 2(24)(x).
again sec. 36(1)(va) is meant for check for such fault by the assessee. So I think the burden of checking whether the amount credited within in due date or not is on the Assessing Officer. So I think you should go through your Auditor,,,,,,,,,,,,,,,,,,,,,,,
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 31 August 2011
ask the client to pay the tax before filing the ITR, here the liability of auditor get end by reporting only, as the expenditure is allowed as its paid before filing the return.
CA Akhil Mittaal
(B.Com(h), SRCC )
(2159 Points)
Replied 01 September 2011
Trilochan
As per HC judgement if the amount of esi/pf not paid by the employer on or before due date as per their respective date then also employer can deposit the amount on or before due date of filing the ROI. you have 2 option with you now:
1. Tell your client to pay the amount before 30th sept; OR
2. Please while computing the tax add that amount since if you don't do this you might get intimation u/s 142(1) to pay the tax amount additionally.
So its better that you yourself add the amount
TRILOCHAN
(SENIOR ACCOUNTANT)
(698 Points)
Replied 01 September 2011
Dear CA Akhil Mittal jee
I am 100% agree with your answer, Sir can you provide me the Case Law which allowed the employees contribution paid before ROI.
Regards
TRILOCHAN
TRILOCHAN
(SENIOR ACCOUNTANT)
(698 Points)
Replied 01 September 2011
Dear Nitin Agaarwal jee
You are telling go with your auditor. If i will agree with you then why the auditor add back some expenses U/s 43B, 40A(3).
So why not 30(1)va
Mukesh Kumar Singh
(CA-FINAL)
(4094 Points)
Replied 01 September 2011
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6876 Points)
Replied 01 September 2011
deduction can be allowed only if
Employee cont paid within next 20day of next month in case of ESI & 15 days of next month in case of PF
but the Employer cont paid within date of filling of return
if there if default in any month(s) in case of Employee Cont should be added back in computaion of income
& also report in 3CD
Aakanksha
(CA Final Student)
(56 Points)
Replied 01 September 2011
The case which Akhil ji is referring is Commissioner Of Income Tax Vs. AIMIL Ltd.( Delhi High Court)[2010]. However, if i am not wrong this case will apply only to those assessees who fall in Delhi Jurisdiction.
CAclubindia
