Regarding VAT and service tax shown as expense in profit and loss in F.Y 2017-18 and F.Y 2018-19

This discussion addresses the accounting treatment of VAT and Service Tax shown as expenses in the Profit & Loss account for FY 2017-18 and 2018-19, particularly for a construction company. It clarifies that if these taxes appear as expenses, they should typically be written off or written back. If a debit balance exists in the balance sheet, it represents a refundable amount from the department or a potential set-off against future VAT liabilities.