A P.ltd co. has failed to deposit its sales tax & service tax liability.
Sales - Rs.8 lacs , 2 lacs being accounted as Sales/Service tax.
Whether 2 lacs be disallowed under Sec.43B if not paid within its due date of filing Income Tax Return.
3 Replies
CA Gyati Gupta
(In Practice)
(8427 Points)
Replied 11 October 2016
Yes it will be disallowed U/s 43B as the same is mandatory to pay before due date of filing return
However, it will be allowed in the year of payment.
Jyothis
(Article)
(1127 Points)
Replied 13 October 2016
What is the logic behind disallowing Liabilities under section 43B.
CA Gyati Gupta
(In Practice)
(8427 Points)
Replied 13 October 2016
Sales tax is a govt Revenue, hence govt wants all its money at the earliest, thats why due to speedy recovery, it has inserted the clause of disallowing the govt liab if unpaid before due date of filing ROI. Whereas same will be allowed in the py in which it is paid.
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