Dear Friends,
Accounting of excise duty and sales tax is done by Exclusive Method i.e. through balancesheet and not through profit and loss account. In such case whatever sales tax liability remains unpaid as at yearend will not hit profit and loss account and so it should not be disallowed while computing business income if it remains unpaid till the due date of return.
Is there any judgement on above matter??please let me know....
Thanks & Regards
Section 43B refers to only incurrence of liability irrespective of whether p&l is debited or not. Therefore, the question raised by you does not arise.
| " | YOUR SALES TAX ENTRY IS RECORDED EXCLUSIVE SO SALES TAX IS NOT EXPESES & U/S 43(B) IS MANTIONED ABOUT THE EXPENSES WHIS IS RECORDED IN P & L BUT NOT PAID BEFORE SUBMITTED TAX AUDIT REPORT SO IN THIS CASE NO MATTER TO DISALLOWED THE EXPENSES | " |
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