One of client having service tax balance in balance sheet of Rs.10 lacs, for this what comment can give in audit report (tax audit report).
The different adjustment and sdisclosure are like this
13. of 3 cd "Amounts not credited to the profit and loss account, being,—
(a) the items falling within the scope of section 28;
(b) the proforma credits, drawbacks, refund of duty of
customs or excise or service tax, or refund of sales tax or
value added tax, where such credits, drawbacks or
refunds are admitted as due by the authorities concerned"
Section 43B treatment.
The first bold letters says if service tax is refund and is income to assessee than it should be credited to p/l.
And section 43b says if the dues are not paid before filing the return, they should be added as income of assesse subject to other conditions.
And same can be claimed in the year of payment.