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Section 43b disallow

Swopna (Audit Assistant ) (44 Points)

30 September 2013

Hi,

Assessee is an Individual contractor; perform audit 1^st time for A.Y.13-14.

Auditor disallowed some item like Duties & Taxes, section 43B of Income Tax Act 1961, that because assessee did not paid the dues on or before filling of return date hence.

Here the question is, is it necessary for the assess to pay those dues and taxes which has been disallowed by the auditor.

If yes then where those entry have to be taken?

(Items are. Service tax, VAT PF. PT etc)

I would be appreciating if you could clear my doubts.

Regards

Swopna

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2 Replies

Prashant Kini (Article Assistant) (154 Points)
Replied 01 October 2013

Yes statutory liabilities in the nature of Service tax, VAT, PF, PT etc have to be paid. Disallowance u/s 43B does not absolve the liability to pay the above taxes and as such should always be paid. These liabilities are shown under current liabilities and as such whenever paid gets reduced from the same

Sourabh Jain (Credit Manager) (62 Points)
Replied 09 October 2013

yes all those expenses for which we have to furnish the dates will disallowed for non payment before tax audit report but it will allow in next year if we paid it, as per the provision of income tax act, 1961