plz can some1 help me in understanding the provisions of sec 43B as soon as possible?
plz respond urgently
9 Replies
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 29 August 2009
first tell what's problem in it?
According to it, the deduction for various taxes in Profit & Loss A/c can be claimed by you only if you have paid it.
It means you can't claim it on due basis.
Various taxes under it are Sales Tax, Service Tax, Contribution to Provident Fund by employer, Gratutity, Superannuation Fund, Interest on loan taken from Financial Institutions, Banks etc.
santhosh
(CA)
(636 Points)
Replied 29 August 2009
The law is that Deduction for certain expenses e.g Service tax,Excise duty,Providend Fund employer Contribution is allowed only on payment basis and not accrual basis.These expenses should have been paid b4 due date u/s 139(1). This is 43B in a jist
vipin pushkar
(article)
(24 Points)
Replied 10 September 2009
Dilip
(Working)
(408 Points)
Replied 13 September 2009
Arora is absolutely right....
any tax,cess or duty which is debited in ur P&L and that is paid on or before due date then deduction of the same is allowed otherwise it is disallowed and needs to be added back in tax audit and tax computation.
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 13 September 2009
The theem of section 43B is actually paid expenditures before the due date which r provided for outstanding only allowed as expenditure for the current year and difference will be allowed as expenditure in the previous year which the date of payment relats
for example:
provided provision for vat tax payable on 31-3-09 is rs.10000/- on it you paid rs.8000 before the date of filling return on or before 30-9-09 and balance will be paid on 4-10-09. Now rs.8000 allowed as expenditure for FY2008-09 and rs.2000 allowed as expenditure for FY2009-10.But it applies only which comes under clause a to f of section 43B please refer the section and clauses for items which comes under this section
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 13 September 2009
The theem of section 43B is actually paid expenditures before the due date which r provided for outstanding only allowed as expenditure for the current year and difference will be allowed as expenditure in the previous year which the date of payment relats
for example:
provided provision for vat tax payable on 31-3-09 is rs.10000/- on it you paid rs.8000 before the date of filling return on or before 30-9-09 and balance will be paid on 4-10-09. Now rs.8000 allowed as expenditure for FY2008-09 and rs.2000 allowed as expenditure for FY2009-10.But it applies only which comes under clause a to f of section 43B please refer the section and clauses for items which comes under this section
Neha Gupta
(Student)
(41 Points)
Replied 02 April 2010
Sir could u plz tell me if " audit fee to ca" is within the purview of section 43b? And if yes then wat would be the tax treatment if it is not paid till september 30 ,2010?
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 02 April 2010
Mr.Neha Gupta audit fee to ca didn't come under section43B because audit fee should be pay after complition of audit for completing audit the due date is 30th september
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