I have doubts regarding sec 43B ki sir sales tax liability payment nahi ki to disallow ho jayegi par sir isko to P&L me debit kra hi nahi Kari entries ye kri
Debtor Dr.
To Sales
To Sales tax payable
Phir kyo disallow kre ?
Thanks in advance sir
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Regarding 43B
Replies (1)
In income tax, accounting of sales tax is assumed in following manner:
1) Debtor Dr.
To sales (inc. sales tax collected)
2) Sales tax paid expense Dr.
To cash/bank
Thus sales tax payment is also expense in the eyes of income tax & therefore section 43B wud result in adding back such tax amount.
1) Debtor Dr.
To sales (inc. sales tax collected)
2) Sales tax paid expense Dr.
To cash/bank
Thus sales tax payment is also expense in the eyes of income tax & therefore section 43B wud result in adding back such tax amount.
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