28 September 2010
Sec 43B 1.Normally vat collected from customers is taken to duties & taxes ( liability Side of Balance sheet Secondly vat paid on purchases is reduced from the said liability 2.The Said Net liability not paid is shown as liability as on March 31 3.We have not credited/debited the vat collected & paid in the Profit & Loss respectively 4.Now my Query is whether the said liability if not paid before due date of filing the return is to be added to income of assessee u/s 43B or not?
28 September 2010
No need to add with the profit under section 43 B since the amount is not debited in the profit and loss account. The reason is the preamble of section 43B is very clear meaning there by that if an amount is debited in p & l account and not paid with in the specified date, disallowance of expenditure attracts under the said section.
CAclubindia
