Section 43b(a)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2010 is vat liability incurred and paid during the previous year relevant to the assessment year 2010-2011 is allowed as deduction while calculated taxable income of the assesses u/s 28. and also explain me point no. 21 sub point A and B of 3CD with reference to above.
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CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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03 September 2010 Basically all depends upon which method you are following. If your VAT accounting is based on EXCLUSIVE METHOD and the Vat receivable and payable is not passed through P & L Accounts then there arises no question of allowing or disallowing of VAT as a deduction. But if you are following INCLUSIVE METHOD of accounting then , the amount of VAT paid by you would be charged to P & L account and any vat liability remains unpaid would not be allowed as deduction