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

[Kishor Deshpande]

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 ?

AI Summary

VAT Payment Before Tax Filing Date is Allowable Deduction Under Section 43B Despite Section 145A Contradiction A client has recorded sales and purchases net of VAT in the profit and loss account, with VAT shown as a liability on the balance sheet. The query is whether paying the VAT payable as of March 31, 2010, before the income tax return filing due date would result in disallowance under section 43B of the Income Tax Act. The response clarifies that while recording sales and purchases net of VAT contradicts section 145A, paying the VAT before the return filing due date qualifies it as an allowable deduction under section 43B.