TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
30 September 2011Dear all
Please confirm me.
As on 31.03.2011 I have received a bill from professional Rs.100000/- + Service Tax 10300/- = Rs. 1,10,300/- and i have not yet paid the payment to the service provider till 30.09.2011 ( Date of ROI).
Whether Rs. 10,300/-( Service Tax Portion) will be come u/s 43B and it will be disallowed?
Regards:
TRILOCHAN
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 30 September 2011
Hi , I am of the opinion that Yes , it will be disallowed under the provision of section 43B , as it is the payment to the government and is very well covered under the first clause that is any payment by way of tax , duty , cess etc., so it is to be paid by date of filing of return otherwise it will be allowed in next previous year .
Mayank
(Sr.Accountant)
(152 Points)
Replied 30 September 2011
Hi,
According to me you have recd the bill so it is not ur liability to deposit the tax on the same.
It is like an professional expense so it will be allowed at ur hand.
Victor
(CA IPCC/CWA INTER/CS EXECUTIVE/MBA(Finance))
(339 Points)
Replied 30 September 2011
It wiil not come under 43B to you... it will be allowed as deduction under section 37 .
ajayCA
(Accountant)
(44 Points)
Replied 30 September 2011
Yes, Mr.Mayank is right it is not your liablity to pay the service tax to the deptt. as you are service receiver not the service provider . The expenses will be allowed in the fy-2010-2011 itself.
further when you will pay the amount to your service provider only then your service provider will pay the tax to the deptt. because before 01.07.2011 the tax on services are on realisation basis.
CA. Manish Chandarana
(Practising CA)
(100 Points)
Replied 16 October 2011
It will not come U/s43B n the expense will b allowed u/s.37 as business expenditure
CA Hardik Bunha
(self)
(2121 Points)
Replied 16 October 2011
in your case section 43B will not be applicable....................section 43B will be applicable to your service provider. you have to pass j.v. in your book by whole exp. as
LEGAL FEES EXP................DR. 1,10,300
TO PROFESSIONAL(& cO)...................CR. 1,10,300
Ashutosh Biswal
(Asst.Manager Finance)
(283 Points)
Replied 16 October 2011
Yes, it should be allowed u/s 37 as business expenditure
and it will not come under 43B (on actual payment biasis) as it's not an liablity to pay service tax for the business , where this bill is being received but its an liablity for the vendor who raised that bill.
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