Whether Vat liability for fy 2010.11 not paid upto 30.9.2011 ( i.e. due date of filing return). My query is that wheter we need to show this vat liability u/s 43B. ?
19 November 2011
Section 43B applies to any tax, duty or cess by whatever name called under any law for the time being force.
VAT being a tax under the concerned state law, shall be allowed as deduction only in the previous year in which it is actually paid or in the same previous year in which VAT liability arises provided it is paid before the due date of filing return. Simply stated, pay it within 30th Sep (for company) to claim deduction. Otherwise, it shall be allowed in the year of payment.
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