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. It's so urgent
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
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