Sales Tax assessed, VAT + CST

[Mohit Goyal]

Dear Sir,

Kindly let us know the allowablity of deduction of assessed tax under sales tax assessment in Tax audit. for example, our assessment of 2009-10 has decided on 13th Aug 2014 and we paid the on 12 Sep'14. in which year deduction of additional liability will be allowed whether it should be allowed in 09-10 or in 13-14. our auditor is denying to accept the deduction because he is claiming that it is the exp of prior period.

Kindly suggest.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

You might have created provisional liability for the tax in the year 2009-10 itself. If so, you can adjust the payment against that provision. In the absence of making provision, in my view the prior period expenses may be adjusted against the current year profit and loss account.