Section 43B

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CA CS Akashdeep Singh (Querist)

28 September 2008 Sales tax payable is liability so why this include in Sec 43B, if it is a liability then there is no question of allow or disallow

CMA Jitendra Singh

CMA Jitendra Singh (Expert)

28 September 2008 But you have to deposit same amount before the filing of return on income ,than same may be allowed for deduction

SANJAY VERMA

SANJAY VERMA (Expert)

28 September 2008 It is a liability,but it is created when we debit it in P/L a/c (or as of now,sales is shown net of VAT),So when we have claimed a statutory expense we have to pay it within due date to claim the expense

CA CS Akashdeep Singh

CA CS Akashdeep Singh (Querist)

28 September 2008 but sir its not expense, please understand me in brief

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 September 2008 If the salestax liability is created by debiting p&l a/c and crediting payable a/c and the liability is not discharged within the stipulated time as per the said act the amount debited as aforesaid will be disallowed u/s43B .

CA CS Akashdeep Singh

CA CS Akashdeep Singh (Querist)

29 September 2008 Now i understand , Thanks sir

taxindiaconnect

taxindiaconnect (Expert)

29 April 2009 Even if the sales tax liability is not routed throug P & L Account i.e. not debited to P&L account, it will be disallowed while preparing the income tax return if not paid within stipulated time. The tax auditor is also under obligation to disclose the same at clause 21 of form 3CD.

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