28 June 2011
dear sir, i want to know whether sales tax or service tax paid on assessment of earlier year is allowable expenditure under the head PGBP or it shall be treated as prior period item and disallowed.
30 June 2011
Service Tax and Sales Tax are allowed on payment basis (Section 43B). Thus, such taxes paid on assessment, although relating to past years, are allowable as business expenditure in the year in which they are actually paid.
CAclubindia
