DISALLOW UNDER 43B

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Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2011 IF ASSESSEE NOT PAID VAT/ SERVICE TAX PAYABLE AS ON 31ST MARCH, BEFORE DUE DATE OF FILING OF I.T. RETURN WHETHER IT WOULD BE DISALLOWED.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 March 2011 Yes. In case Vat and Service Tax Payable as on 31.3.2010 has not been paid till the due date of return filing , the same will be disallowed.

If you pay after the due date it will be allowed in the assessement year relevant to payment date.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 March 2011 If VAT and service tax is not routed through profit and loss account, question of disallowance u/s 43B does not arise.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 March 2011 I respectfully not completely agree with the expert, Shri B.C. Warrier.

When we follow exclusive method of Accounting then also in such case, Section 145A can be invoked and accordingly Unpaid Vat, payable on the purchases which are forming part of the closing stock, can be disallowed.

Hence, strictly it can't be said for VAT that, it can not be disallowed in cases where it has been not routed through P&L A/c.

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