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Non payment of mvat liability

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This query is : Resolved

Practicing CA (Querist)

20 October 2011 The assessee covered by section 44AB has filed return of Income before 30/09/2011, ie due date, but failed to discharge his MVAT liability before 30/09/2011, what will be the effect on his Audit Reports under Income Tax Act? and MVAT Act?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

21 October 2011 yes, auditor has to report the same in form 3CD clause 21(i)B b , for your ref. reproduced below

21.(i) In respect of any sum referred to in clause (a),(b), (c), (d), (e) or (f) of section 43B, the liability for
which;
(A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was

(a) paid during the previous year;

(b) not paid during the previous year;

(B) was incurred in the previous year and was

(a)paid on or before the due date for furnishing the return of income of the
previous year under section 139(1);

(b) not paid on or before the aforesaid
date.
* State whether sales tax, customs duty, excise duty
or any other indirect tax, levy, cess, impost etc. is passed through the profit and loss account.

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