03 January 2011
Assessee maintained books of accounts on mercantile basis. For Vat Input on purchase and Vat output on sales he maintained separate ledger account and at year net balance of (i.e. input-output) reflected in B/S. My query is that if vat payble is not paid within due date of filing of IT return whether it would be disallowed or not ?pls clerify
03 January 2011
Thanks for reply. Sir, 43B relates to any expenditure dr. to P L account and if the VAT is not dr. to PL a/c. how it would be disallowed pls.
43B will not attract in view of the following decision.
In India Carbon Ltd v. IAC (1993) 200 ITR 759(Gau.) the limited question of applicability of section 43B, when no claim is made in the profit and loss account was discussed. The court held that where the assessee has neither claimed a deduction nor any charge was made to the profit and loss account, no disallowance could be made by taking recourse to the balance sheet of the assessee for taxing the sales tax collected by applying section 43 B.
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