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
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 .
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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