43b of i.t.act

This query is : Resolved

CA Sanjay Baheti (Querist)
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19 September 2012 Whether professional tax deducted from employee's salary/wages on monthly basis for the F.Y.2011-12 is unpaid till date of signing of Tax Audit Report needs to be disclosed in 3CD Form or not.

Morever whether the same can be added to Assesse's Income while computing the same.

Futher if said amount is not paying since last 2 years then how to be disposed off account of Professional Tax payable in Books of account

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2012 To be reported in 3CD. The expenditure shall be disallowed. The "payable" account should stay in the books till the amount is actually paid.

CA Sanjay Baheti

CA Sanjay Baheti (Querist)
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19 September 2012 Mr.Amol Joglekar,

Thanks for reply.However you have mentioned that the expenditure shall be disallowed.which type of expenditure shall be disallowed as same is not debited under Profit & Loss Account. Only employee's share is credited to Professional tax under the Head Duties & Taxes.

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2012 That is the PENAL kind of provision. As you have rightly pointed out, one school of thought always says that only that expenditure can be disallowed which is debited to P&L a/c. With that contention, nothing should be disallowed. But another school of thought says, whether or not debited to P&L a/c, it should be disallowed... (Added back in computation... you need to take the call accordingly)

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