Disallowance u/s 43B

This query is : Resolved

CA Amrish Talati (Querist)
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28 September 2010 Sec 43B
1.Normally vat collected from customers is taken to duties & taxes ( liability Side of Balance sheet
Secondly vat paid on purchases is reduced from the said liability
2.The Said Net liability not paid is shown as liability as on March 31
3.We have not credited/debited the vat collected & paid in the Profit & Loss respectively
4.Now my Query is whether the said liability if not paid before due date of filing the return is to be added to income of assessee u/s 43B or not?

CA Navin Jain

CA Navin Jain (Expert)
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28 September 2010 YES SHALL BE ADDED IF NOT PAID BEFORE DUE DATE OF RETURN

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 September 2010 No need to add with the profit under section 43 B since the amount is not debited in the profit and loss account. The reason is the preamble of section 43B is very clear meaning there by that if an amount is debited in p & l account and not paid with in the specified date, disallowance of expenditure attracts under the said section.

CA Navin Jain

CA Navin Jain (Expert)
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28 September 2010 Dear, Chackrapani sir ji

i may wrong

According me vat shall be added

as per sec 43 B following exp. are deduct able on payment basis

any sum payable by way of tax duty cess of fee

hence Vat is tax so must be paid before due date.

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