Allow or disallow case
This query is : Resolved
03 June 2014
I am working in pvt co and we have paid sale tax which is shown under duties and taxes, can be the sales tax amt deductible or allowable under income tax act, if so under which act?
04 June 2014
There are two methods in accounting sales and sales tax
1.if you credit sales including sales tax and credit this gross sales to p&l account, sales tax paid is an allowable/ deductible expense.
2. If net sales is taken to p & l account excluding sales tax, sales tax paid will not be allowed as an expense.
The deductibility is not as per income tax act but based on method of accounting
1.if you credit sales including sales tax and credit this gross sales to p&l account, sales tax paid is an allowable/ deductible expense.
2. If net sales is taken to p & l account excluding sales tax, sales tax paid will not be allowed as an expense.
The deductibility is not as per income tax act but based on method of accounting
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
