22 August 2008
An assessee has paid Vat relating to F.Y.2006-07 in September-2007 i.e.before the due date of filing return, but respective provision as 'Vat payable' has not been made as on 31.03.2007. He has not claimed deduction in F.Y.2006-07 on accrual basis.
Whether such payment is allowed on payment basis as per the provisions of sec.43B in F.Y.2007-08? or, it shall be disallowed as prior period expense in F.Y.20007-08?
CAclubindia
