Search Results For: 43B


QUERY: Deductions on actual payment -Whether GST is covered u/s. 43B of the Income tax Act, 1961?
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GST (Goods & Services Tax) is applicable from July 1, 2017. GST has replaced the Excise Duty, Service Tax, Countervailing Duty (CVD), Special Additional Duty of Customs (SAD), Value Added Tax (VAT), Central Sales Tax (CST), Octroi, Entry Tax, Purchase Tax, Luxury Tax, Taxes on Lottery, States cesses and surcharges and Entertainment Tax (other than tax levied by the Local Bodies). Thus GST is one tax which covers all the above taxes and which is destination based tax.

QUERY: The assessee is a Co-Operative Society and maintaining accounts on mercantile system of accounting. During the financial year 2008-09 (Asst. yr. 2009-10) on the basis of actuary valuation made provisions of Rs. 80 lakhs towards employees gratuity fund and during the same financial year deposited full amount to the LIC under Group Gratuity Life Assurance Scheme. The AO wants to disallow as on the ground that it is not Approved Gratuity Fund. Assessee’s pleas is that the same is allowable u/s. 40A(7) read with section 43B. In past so many years the same was allowed by the AO though no specific reference was made.

Kindly let us know the legal view with case law if available.
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S. 29 of the Act reads as under:

“The income referred to in section 28 shall computed in accordance with the provisions contained in sections 30 to 43D”.

S. 43B reads as under:

QUERY: Employee’s contribution unpaid is disallowable u/s. 43B?
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Section 43B reads as under:

“Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under the Act in respect of –

(b) Any sum payable by the assessee as an employer by way of contribution

QUERY: A company, obliged to spend 2% of average net profits on Corporate Social Responsibility. Considering the fact that the mandates of the Companies Act on CSR specifies only expenditure specified in Schedule VII, which are not related to business. Further the CSR rules insist that the expenditure should not be in the course of business or undertaken for employees and families. Will this expenditure be allowed as business expenditure? Will it be treated on par with other statutory payments and be subject to 43B.
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Explanation 2 has been inserted in section 37(1) of the Act with effect from assessment year 2015-16 which reads as under:

“For the removal of doubts, it is hereby declared that for the purpose of sub-section (1), any expenditure incurred by an assessee on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to be an expenditure incurred by the assessee for the purpose of the business or profession”