Urgent help required

Hi , I am of the opinion that Yes , it will be disallowed under the provision of section 43B , as it is the payment to the government  and is very well covered under the first clause that is any payment by way of tax , duty , cess etc., so it is to be paid by date of filing of return otherwise it will be allowed in next previous year . 

Hi,

According to me you have recd the bill so it is not ur liability to deposit the tax on the same.

It is like an professional expense so it will be allowed at ur hand.

It wiil not come under 43B to you... it will be allowed as deduction under section 37 .

Yes, Mr.Mayank is right it is not your liablity to  pay the service tax to the deptt. as you are service receiver not the service provider . The expenses will be allowed in the fy-2010-2011 itself.

further when you will pay the amount to your service provider only then your service provider will pay the tax to the deptt. because before 01.07.2011 the tax on services are on realisation basis.

Yes, Mayank is right......

It will not come U/s43B n the expense will b allowed u/s.37 as business expenditure

in your case section 43B will not be applicable....................section 43B will be applicable to your service provider. you have to pass j.v. in your book by whole exp. as

LEGAL FEES EXP................DR.  1,10,300

     TO PROFESSIONAL(& cO)...................CR.  1,10,300

Yes, it should be allowed u/s 37 as business expenditure 

and it will not come under 43B (on actual payment biasis) as it's not an liablity to pay service tax for the business , where this bill is being received but its an liablity for the vendor who raised that bill.