MOHAN AGRAWAL (Practice) 09 October 2019
Section 43B(a) states that "any sum payable by the assessed by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force" shall be allowed as deduction only on actual payment.
Now if such tax (like GST) was not debited to P&L account and balance sheet is showing GST liability and the same has not been paid before filing of ITR, then whether the same should be reported in point 26 (i) (B) (b).
CAclubindia Online Learning offers a wide variety of online classes and video lectures for various professional courses such as CA, CS, CMA, CISA as well as various certification courses on GST, Transfer Pricing, International Taxation, Excel, Tally, FM, Ind AS and more. know more
CA Dhruva Kalamanji (Chartered Accountant ) 09 October 2019
Even in case of gst shown in balances sheet disallowance under 43B applicable.
On simple reading it gives meaning as only those tax which are debited to pl is disallowed. however actual accounting principle of revenue means gross receipt (taxable value+tax) if you have idea of trading account this is easy to understand. where we show taxble value+tax and again minus tax. meaning tax is by default is a part of pl item. so 43B is applicable and 3cd reporting applicable.
this issue is discussed in various level of court. and varied decision has come. however supreme court has made its precedent as 43B applicable even in case of gst shown separately in b.s.