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.
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43b on service tax
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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..!!
It won't be added back provided you haven't routed the same through P/L A/c. For futher clarification refer the following case law :
CIT Vs.Real Image media Technologies (P) Limited [2008]114ITD573(Chennai)
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