regarding tax audit

This query is : Resolved

Nikhil chaturvedi (Querist)
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22 September 2008 a firm has shown its sales excluding the UPTT & CST.
also,it has not debited the UPTT & CST in the P&L A/c.
firm doesn't pay the outstanding amount of UPTT & CST which has been shown as liability till the due date of furnishing the return.
what is the effect under tax audit.
what objection does auditor raise.

CA Pawan Goswami

CA Pawan Goswami (Expert)
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22 September 2008 The outstanding amount of UPTT & CST will be disallowed u/s 43B if not paud before due date of filing of return and it is be mentioned in clause 21 of form 3CD.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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22 September 2008 section 145A states as under:

Method of accounting in certain cases.

145A. Notwithstanding anything to the contrary contained in section 145, the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head “Profits and gains of business or profession” shall be—

(a) in accordance with the method of accounting regularly employed by the assessee; and

(b) further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation.

Explanation.— For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment.]

SO NOTINGS FOR 145A VIOLTIONS WILL COME.

MORE OVER SALES TAX COLLECTED BUT NOT PAID TILL DUE DATE OF RETUN WILL BE ADDED BACK U/S 43b

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