16 March 2010
Dear sir If service tax, VAT, excise & penalties on them are are not paid in the CY but paid in the next year. When these deductions will be allowed ? In the CY or in the next year as per IT Act
16 March 2010
As per section 43B, these will be allowed in the year itself if paid by the due date of return or otherwise in the year when actually paid. However, penalty is not an allowable expense.
16 March 2010
But service tax payable will not come under the purview of section 43B since it is normally not routed through the profit and loss account.
CAclubindia
