Section 43B - service tax is not touted through profit and loss account

[himanshu ashar]

If the amounts of Service Tax collected and paid are not routed through the P & L A/c. then can section 43B apply to the unpaid amount of Service Tax?

[RAJESH DHANDA]

yes section 43 b will be surely applicable

[CAGOPALJI AGRAWAL]

Service tax is not covered u/s 43B due to provisions of section 145A. See judgement in the case of CIT Vs.Real Image media Technologies (P) Limited [2008]114ITD573(Chennai)

[CAGOPALJI AGRAWAL]

The full text of the case referred is available at http://www.knowledgebible.com/forum/showthread.php/761-Section-43b-of-income-tax?p=1444#post1444

AI Summary

Section 43B applicability to unpaid service tax questioned; conflicting views cite Section 145A and Real Image Media judgement.
Whether Section 43B applies where service tax is not routed through the profit and loss account is disputed: one forum reply affirms Section 43B's applicability to unpaid service tax; a contrary reply contends service tax falls outside Section 43B due to statutory accounting treatment under Section 145A, citing the tribunal decision in CIT v. Real Image Media Technologies.