Disallowance u/s 43b

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Amish Manuja (Querist)

02 January 2015 whether Section 43B includes service tax payable i.e. collected from customers and not paid to the government.
i had studied case laws
Commissioner of Income Tax vs. Noble & Hewitt (I) Pvt. Ltd. [2008] 166 Taxman 48 (Delhi) &
Assistant Commissioner of Income-tax vs. Real Image Media Technologies Pvt. Ltd. [2008] 114 ITD 573
but it was not convincing that service tax was not diallowed
according to some supreme court decisions it was held that excise duty was disallowed although is was also not route through p&l a/c.
whether it is justified or not because service tax is also an indirect tax like excise duty & sales tax??

Amol S Joglekar

Amol S Joglekar (Expert)

02 January 2015 According to me the LOGIC behind 43B is as if Income tax wants to protect the revenue interest of other ACTs as well...
So service tax is no exception.

As rightly pointed by you....no any question of "Routed thru P and L or not"

It is disallowed if NOT paid.....

Amish Manuja

Amish Manuja (Querist)

02 January 2015 if we not disallowed the service tax payable u/s 43b then al the companies can collect service tax from the customers and not paid to the government.
if anyone have case law relating to disallowance of service tax payable u/s 43b,den please rply.

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