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.
||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.
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||CA. H. N. Motiwalla
||29, 40A(7), 43B
||deductions, disallowance, Group Gratuity
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:
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