Deduction u/s 43B of the I. T. Act is allowable for payment of VAT payable before due date u/s139 , Income Tax

[Kishor Vishnu]

One of my client is shown sales and purchase in the profit & loss account net of the VAT and VAT is shown in the balance sheet as liability. If he will pay the VAT payable as on 31st March 2010 before due date of filing of his income tax return then same shall be disallowed u/s. 43B or not ?

Posts / Replies

[Surender Gupta]

If you are showing sales and purchase net of VAT in the profit and loss account the same is contrary to provisions of section 145A. On the other side, if you deposit the VAT befor due date of filing of return, it will be allowed as eligible deduction u/s 43B.