Section 43 b

Depends on whether ST is passed through your profit and loss account or not.  If it is, then you credit sales tax collected to the profit and loss account and claim it as an expenditure when you actually pay the collected amount.  Most of the time, however, ST is part of sales and not shown seperately as such. Normally all expenses are allowed on accrual basis and the expenses in 43B are exceptions, being allowed only on actual payment.

AGREED AND REMEMBER TAX IS NOT AN EXP BUT A CHARGE ON INCOME TO EARN IT INCUDING SALES TAX ON SALES EARNED.

As per sec 145A of Income tax Act prescribes inclusive method of valuation. Accordingly Sales tax will be an expense and hence sales tax unpaid will be disallowed u/s 43B.

Natesh

Sales tax is certainly an expense for business. And according to Sec.145A it is included in the calculation of profit and loss of business hence sec.43b applies on sales tax. 

@ Tushar sampat :-Tax is also expense. all expense are chargeon income. All payments made to earn income are expenses and all expense are charge against profit/income.

Correct me if i am wrong..