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

This query is : Resolved 

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??

05 May 2008 yes as it is cost of material so deduction will be allowable as purcahse price of price goods.


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