Section 43b

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2018 If assesee is following Exclusive method for sales & Puchases

Examples :
net sales is 10 (shown in sales), Rs 2 (GST on sales) shown in duties & Taxes
net Purcahse is 9 (shown in purachses, GST credit on it of Rs 1.5 shown in Duties & Taxes

so net payable is 0.5 not paid till Tax Audit date

will Rs 0.5 disallow U/s 43B ??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 October 2018 No, because tax is not passed through P&l a/c.

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2018 in above case if asseessee follows inclusive method ie
10(sales)+ 2 (GST) = 12 in Sales
9(Purchases) + 1.5 (GST) = 11.5 in purchases

0.5 is tax Liabililty of which 0.2 has been paid, entries passed are

Case 1

GST Paid Dr 0.5
To Bank 0.2
to GST Payable 0.3

Case 2 :
GST Paid dr 0.2
To Bank 0.2

In both of the above cases
In which case GST payable of 0.3 will be disallow ??? 0.3 is not paid till audit

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