43B

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pradeep agrawal (Querist)
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03 January 2011 Assessee maintained books of accounts on mercantile basis. For Vat Input on purchase and Vat output on sales he maintained separate ledger account and at year net balance of (i.e. input-output) reflected in B/S. My query is that if vat payble is not paid within due date of filing of IT return whether it would be disallowed or not ?pls clerify

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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03 January 2011 Only VAT amount will be disallowed, however if the amount is paid before filling the return as per sec 139 , 43 B will not apply.

pradeep agrawal

pradeep agrawal (Querist)
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03 January 2011 Thanks for reply. Sir, 43B relates to any expenditure dr. to P L account and if the VAT is not dr. to PL a/c. how it would be disallowed pls.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 January 2011

43B will not attract in view of the following decision.

In India Carbon Ltd v. IAC (1993) 200 ITR
759(Gau.) the limited question of applicability of section 43B, when no claim
is made in the profit and loss account was
discussed. The court held that where the
assessee has neither claimed a deduction
nor any charge was made to the profit and
loss account, no disallowance could be
made by taking recourse to the balance
sheet of the assessee for taxing the sales
tax collected by applying section 43 B.

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