CST paid extra @ 1 % allowed for deduction as per Income Tax

This query is : Resolved

Sandeep Gupta (Querist)
Follow

01 May 2008 Dealer is registered for past years under Delhi VAT Act and got registration for CST Act in June 2007.
Dealer purchased good from Haryana CST charged @3 % in the bil provided C form has been issued by dealer to creditor with in stipulated time.Dealer not able to do so. Now creditor charged CST extra @ 1% i.e. 3 % paid earlier now 1 % in addition .

This 1% CST paid allowed as deduction U/s 28 to 43D to the dealer while calculating PGBP for AY 2008-09.If allowed under which section and if not then why??

sunil

sunil (Expert)
Follow

05 May 2008 yes as it is cost of material so deduction will be allowable as purcahse price of price goods.