22 October 2020
Assessee was asked to take registration under ESIC retrospectively from 1-2-16 in FY 19-20. Assessee pay Employer & Employee's contribution from 1-2-16 to 31-3-19 in FY 19-20. Whether employer contribution will be allowed u/s 43B. Whether employer contribution is prior period expenditure and will be disallowed under income tax?
22 October 2020
Employer contribution will be allowed u/s 43B being business expenditure. Only interest paid if any will be disallowed. Being asked to take retrospective registration it can't be considered as prior period one.
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