Doubt

Provision for sales tax liability will not be allowed as deduction. Such expenses shall be allowed in the year in which it actually paid.

regards,

ratan

Refer Section 43 B in this respect which says some expenses are allowed on payment basis. Ex, sales tax etc.

regards,

ratan

Yes, Nitn,

Mr. Ratan is right here.... Provision for sales tax liability will not be allowed as deduction

Yes as per Section 43B any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in Section 28 of that previous year in which such sum is actually paid by him provided that nothing contained in this section shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return.

So if the liability is provided for and not paid till the due date of filing return the same will not be allowed as a deduction from business income

Thank you all for the help

Provision for sales tax liability will not be allowed as deduction. Such expenses shall be allowed in the year in which it actually paid. so. that provision are not allowed