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43b- disallowance

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This query is : Resolved

SHANEEL MOHAMMED PT (Querist)
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06 August 2013 Dear All,

for an expense service tax is not paid,then under 43B expenses will be disallowed or only the service tax portion will be disallowed?? For an example, if GTA service is there, under GTA(reverse charge mechanism will arise) so company need to pay service tax, GTA service (expenses)=Rs. 10000, and Service tax on that is Rs.1236, The company not paid the service tax, So under section 43B that GTA service (Expenses) or Service tax of Rs 1236 will be disallowed?

Thanks to all in Advance......

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 August 2013 43B is applicable only to statutory dues. If the statutory dues are not deposited by due date of filing the return, the same shall be disallowed.

The expense on which such liability arose will NOT be disallowed.

In this case, freight expense will NOT be disallowed.
Service tax on such freight shall be disallowed.

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