Disallowance u/s 43b

Page no : 2

Surendra Agarwal (MANAGER FINANCE AND BUSINESS PLANNIN) (289 Points)
Replied 07 November 2011

Yes bafna sir right and even if he may reject books of account of assessee if not in line with section 145a n make assessment in manner provided u/s 144

amitmehta_ca (CA, CMA) (99 Points)
Replied 07 November 2011

Dear Sripal,

May be you are not able to understand what exactly i want say. For your understanding i am giving two situation which will make my point of view more clear

Cae 1-: When Vat routed through P&L A/c

Particulars	Amount	Particulars	Amount
Purchase(Inclusive of VAT on purchase)	93200	Sales(Inclusive of VAT payable)	104000

Profit	10800

Case 2-: When VAT not routed through P&L A/c

Particulars	Amount	Particulars	Amount
Purchase(Inclusive of VAT on purchase)	90000	Sales(Inclusive of VAT payable)	100000

Profit	10000

From above two example i hope you can understand what i want to say regarding adding back to income as the difference between the above two mention method will be the VAT liability not paid. ie. Rs.800.

Regards

Amit Mehta

amitmehta_ca (CA, CMA) (99 Points)
Replied 07 November 2011

Sripal Please note that in case two figures are exclusive not inclusive.

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 07 November 2011

Thanks to all for a fruitful discussion.

CA Sripal Jain (Associate Finance) (709 Points)
Replied 07 November 2011

hey im speaking about vat payable and receivable...anyways this both accounts are not shown in p&l account...if im not wrong as per guidance note on VAT...so differntial amount wil be shown as liabilti or asset...so plzz lemme knw if u can just be more clear regding this or i have to agrre with bafna sir regding 145a section which speaks about all duties taxes must be included