Disallwance of VAT Payable and Service Tax Payable
whether VAT payable and Service Tax Payable is to be added to profit while computing Income from Business and Profession if not paid till the filling of Return.? . Under which sec it is to be added to profit.? I have not use the word disallowed , as the above items are balance sheet items and not the P& L items . Sec 43B speaks only of dis allowance of certain expenditures which are charged in P& L a/c. I want to know the exact treatment of above items while computing Income from PGPB. more
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All these exp if to be borne by the business is already accounted for in P/L Account in form of VAT and service tax exp . However if it has to paid from the modvat then they do not come in computation of profit . Any further requirement you may contact directly. more
Jan 16
Sir, the amount of VAT/ST payable will be added to your taxable income even if it is a balance sheet item. It will be added to your taxable income u/s 43B read with section 145A of I.T.Act, 1961. You may refer to following judgment:- Munaf Ibrahim Memon vs. ITO (ITAT Pune) COURT: ITAT Pune CORAM: Pradip Kumar Kedia (AM), Sushma Chowla (JM) SECTION(S): 145A, 43B DATE: October 30, 2015 (Date of pronouncement) AY: 2009-10 CITATION: S. 43B/ 145A: Taxes collected by the assessee, which remain unpaid, have to be added to the income even if the same are not debited to the P&L A/c and claimed as a deduction Hope this clarifies the issue . more
Jan 16
Adding to above my comment, these liabilities are collected from the customer and not an exp of the business, hence if you not paid it will amount to serious defaulting and authorities may block your bank account also !! more
Jan 16
