Sec 43b of income tax act, 1961

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2014 If Vat is not routed through profit & loss account and not paid to the subsequent period, then sec 43b attract?

Amol S Joglekar

Amol S Joglekar (Expert)
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21 November 2014 section 43B is a sort of pecuniary section.It does not talk about whether or not the expenditure is routed through Profit and Loss account.
43B may be looked upon as if Income Tax Act is trying to protect the interest of its brotherly, sisterly, motherly, fatherly, step motherly, step fatherly and all such related Acts.

Rupesh Jain

Rupesh Jain (Expert)
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22 November 2014 yes o/s vat amount will include in your income if not paid before return filling .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 November 2014 Please refer Section 145A of the Income tax Act,1961 according to which income should be inclusive of "tax, duty, cess or fee". Hence VAT should be included in the value of sales for the computation of income and for arriving at Net Profit. If not done (not routed through p & l a/c), 43B disallowance attracts on the liability appearing in balance sheet.