Will all govt dues (Sales tax, TDS etc) if not paid by last date of audit be taken as company income?
Derek Dsouza (abc) (24 Points)
28 September 2012Will all govt dues (Sales tax, TDS etc) if not paid by last date of audit be taken as company income?
ANJALI NEGI
(Chartered Accountant)
(1263 Points)
Replied 28 September 2012
Govt. dues if not paid by the due date cannot be treated as income they remain as liability and are to be paid in future.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 28 September 2012
Yes, they will be added back to the taxable income due to non-compliance of section 43B. When they are actually paid in the subsequent year(s) then the same would be deducted from the taxable income on payment basis.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 28 September 2012
Yes. Your query is related with section 43B of income tax act. As per section 43B certain deductions are allowed on payment basis. It includes excise, vat, service tax tds etc if these dues are paid on or before the filing the return then they are allowed as deduction but if the same is not paid then they will be added back in profita nd the same will be allowed in the year of payments.
Read section 43B for more clarification.
Thank you
Regards,
Siddharth Bumb
sidbumbhelp @ gmail.com
CA.Vinita Gupta
(Deputy Manager- Finance)
(2918 Points)
Replied 29 September 2012
Yes as per Sec43B it will be added back
CAclubindia
