There is a Notification under Rajasthan VAT that if a contractor from whose payments the awarder has deducted TDS may opt undertaking of exemption for the payment of VAT/ sales tax , in this case whole of his TDS amount is taken as EXEMPTION FEES. and the contractor is issued a certificate from the department called " exemption Certificate" making him exempt from the payment of VAT/ sales tax.
Now a Question arises that the exemption fees charged in lieu of sales tax is also an allowable expenditure or not , and if the same is allowable expenditure whether section 43B gets attracted ?????
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