Disallowance u/s 43B
This query is : Resolved
dheerajDheeraj
(Querist)
29 September 2009
Shall the vat and service tax be disallowed u/s 43B even if they are not debited to Profit and Loss account and also not deposited to the credit of government up to due date of return filing?
CA SANJAY MUKHERJEE
(Expert)
30 September 2009
Sec 43 B says that some statutory expenses ( tax ,duty,cess and fees) are deductible only on payment basis.
And this applicable only if taxpayer follows mercantile sysyem of accounting.
Which means that expenses are booked in accounts as it become due.
In Income Tax return you have to show Service Tax,VAT,Excise collected through your sales in ITR 6 P.L A/C in Point No. 2 and paid or payable in point No. 34.
So for Income tax purpose you have to take the Vat into account both collection and paid or payable to Govt and then to add back the unpaid portion under sec 43B in the sheet called Other information point number 11.
And this applicable only if taxpayer follows mercantile sysyem of accounting.
Which means that expenses are booked in accounts as it become due.
In Income Tax return you have to show Service Tax,VAT,Excise collected through your sales in ITR 6 P.L A/C in Point No. 2 and paid or payable in point No. 34.
So for Income tax purpose you have to take the Vat into account both collection and paid or payable to Govt and then to add back the unpaid portion under sec 43B in the sheet called Other information point number 11.
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