For Income Tax purpose, when service tax is shown as payable in balance sheet and not shown in P& L account , will this be disallowed and added to total income ? Please clarify.
For Income Tax purpose, when service tax is shown as payable in balance sheet and not shown in P& L account , will this be disallowed and added to total income ? Please clarify.
How can it be showing as payable in Balance Sheet, without passing from P&L A/c.....
What entry did you pass for it?
It would be disallowed u/s 43B of I.T. Act, 1961.
If service tax is not routed through P/l Account, no question of disallowances occur since it is not booked as expense.
Advised to check the Service tax entry methods..!!
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