Dissallowance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 Company has to pay Service Tax but ST has not been paid until due date of return, so under which Sec. of IT Act it is disallowable.

Notes:
1. Company account the Service Tax by Accrual Basis

2. Company has not claimed the Service Tax as expenses, it is shown as payable to government.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 August 2011 If service tax accounting is not routed through profit and loss account, disallowance under any of the sections of Income tax act ,1961 will not attract.

taxindiaconnect

taxindiaconnect (Expert)
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18 August 2011 Dear BC, Sales tax is also not routed through P & L Acccount but that is disallowed under section 43B. Similarly the service tax should not be treated at par?