43B will attract?

This query is : Resolved

CA Bosu babu (Querist)
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25 September 2008 If an assessee has not paid service tax before due date and also remain unpaid upto date of audit report, but provision for payment has been created. whether it will attract 43B? or not? or if they pay with in filing of return they can claim?

Guest

Guest (Expert)

25 September 2008 Yes it will attract the said section, and the auditer is required to report the same under the tax audit report.

And it can be claimed as deduction is its paid before the filling of return.

CA Rohit

Vineet

Vineet (Expert)
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25 September 2008 Dear Bosu, provisions of section 43B are not applicable in respect of service tax. u can go thru recent judgement of Chennai tribunal in case of Real Images.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 September 2008 I agree with Mr. vineet.

CA Bosu babu

CA Bosu babu (Querist)
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26 September 2008 Hey Vineet can you pls tel me the highlights of such case? or give me reference

CA Bosu babu

CA Bosu babu (Querist)
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04 November 2008 Business expenditure – S.43B – Service tax billed but not received – Service tax becomes payable only on receipt from client – No disallowance can be made u/s.43B – A.Y. 2002-03

ACIT vs. Real Image Media Technologies P. Ltd. (2008) 116 TTJ 964 (Chennai)

Service tax though billed but not received not having become payable to the credit of the Central Government by virtue of s. 68 of the Finance Act, 1994, rwr. 6 of the Service Tax Rules, 1994, same could not be disallowed under section 43B. Further, assessee service provider is merely acting as an agent of the Government and is not entitled to claim deduction on account of service-tax and therefore no disallowance can be made on the analogy of sales-tax, excise duty, etc.

CA Bosu babu

CA Bosu babu (Querist)
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04 November 2008 the above things only highlights....

in that they never said 43B will not attract service tax....

nw final doubt is whether st wil come under 43B or not...?