TaxTMI 
TaxTMI 
Deduction of sales tax
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....eduction of sales tax<br> Query (Issue) Started By: - manoj gupta Dated:- 23-12-2011 Last Reply Date:- 29-12-2011 Income Tax<br>Got 2 Replies<br>Income Tax<br>A compnay paid Rs. 1000000/- as input tax....
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.... on material purchased. It adjusted Rs. 800000/- against output tax payable and claimed balance of Rs. 200000/- as refund from sales tax in the year 2007-08. The sales tax assessment was completed in ....
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....the year 2008-09 and the department refunded only Rs. 150000/-. It claimed Rs. 50000/- as expenditure in the year 2008-09. Will it be allowed as deduction. if yes, under which section of income tax ac....
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....t. pls. clarify along with relevant case laws if any. Thanks in advance. Reply By ranganath shenoy: The Reply: in my opinion the reduction of refund may be equated to demand of tax.Any tax paid/adj....
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....usted is allowed in the year of payment under Section 43B read with Sec 37 whatever be the method of accounting Reply By DEV KUMAR KOTHARI: The Reply: The expenses of Rs.5000/- crystlised on complet....
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....ion of assessment. therefore, adjustment of Rs.5000/- out of amount shown as claim for rdfund will be in nature of expenditure on account of goods purchased. You had deducted Rs.100000/- from goods p....
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....urchsed/ consumed in earleir year. Now out of this Rs.5000/- is not made availabel by the ST department and it assumed nature of cost of goods. The accrual is at the time of completion of assessment a....
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....nd lower refund.<br> Discussion Forum - Knowledge Sharing ....