in 2008 x co. had collected 1lakh sales tax. x co. showed it as payable to govt. as on 31.3.9. but the actual payment was made after 30th sept 2009. ITD claims that amount of sales tax collected and not paid to govt as income for yr ended 31.3.9. and disregarded the fact that actual payment, although belated, had been made. i came across case laws that allowed expenses of employees taxes paid after 30th sept. but can we apply that concept to the given situatio? also plz provide relevant decision if you know of any in this regard. thanks.
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Interesting dispute - answer this if you can
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As per Section 43B of the I-T act, any payment towards duty,cess,taxes,bonus etc.. can be claimed as deduction to the A.Y. whihc it relates if the payment is being made on or before the due date of filing the IT return u/s 139(1). However in the given case the sales tax collected relates to the period prior to 31st Mar 09. But the co shud have paid the same on or before 30th sep09.
In the given case the co has made the pymt of ST after the due date of filling the return of Income i.e. 30th sep09, hence it can claim the deduction of the pymt of St only in A.Y.2010-11 if the payment is made in F.Y.2009-10 or any subsequent A.Y. relevant to the P.Y.
In respect of employee taxes such as PT also the above would allpy. However in respect of PF if the pymt is not made on or before the due date as mentieond in the PF act, then no deductino will be allowed even if the payment is being made after the due date.
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