CST paid extra @ 1 % allowed for deduction as per Income Tax

This query is : Resolved

Sandeep Gupta (Querist)
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01 May 2008 Dealer is registered for past years under Delhi VAT Act and got registration for CST Act in June 2007.
Dealer purchased good from Haryana CST charged @3 % in the bil provided C form has been issued by dealer to creditor with in stipulated time.Dealer not able to do so. Now creditor charged CST extra @ 1% i.e. 3 % paid earlier now 1 % in addition .

This 1% CST paid allowed as deduction U/s 28 to 43D to the dealer while calculating PGBP for AY 2008-09.If allowed under which section and if not then why??

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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01 May 2008 it is allowed in income tax act all taxes except income tax fbt tax mat i e all indirect tax which are paid are allowable in income tax act u/s 37(1) this amount pay in time before filling of income tax return u/s 139(1)

Sandeep Gupta

Sandeep Gupta (Querist)
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02 May 2008 Thanx Sir .Pls clarify me that non issuance of C forms by dealer to creditor is voilation of law.Even then it is allowed as deduction u/s 37(1) if amt paid before filing return u/s 139(1).Pls reply.