luxury tax - Disallowance

This query is : Resolved

Saroja K Venkat (Querist)
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22 June 2008 Whether luxury tax which was short collected from the customers and paid by the company based on an assessement order and charged to P&L A/c - disallowed

Whether such tax comes under the ambit of provisons of Sec 40 a

Jitender

Jitender (Expert)
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22 June 2008 if it is not of penal nature,then it is allowable but subject to sec 43B.
if it is paid as penalty,then not allowable.

Saroja K Venkat

Saroja K Venkat (Querist)
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22 June 2008 The luxury tax is paid during 2007-08 towrads asst., order for short payment during 2005-06 which could not be collected from the customers

So., it does not satisfy 43B - So., can it be said that - it is disallowed

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