Hello everyone . Please let me know whether the following attract 40A(3) provisions
A real estate company pays Cash for stamp duty for property registration . is it revenue expenditure or capital expenditure.
RAKESH (Almost CA) (2199 Points)
30 June 2011Hello everyone . Please let me know whether the following attract 40A(3) provisions
A real estate company pays Cash for stamp duty for property registration . is it revenue expenditure or capital expenditure.
Gourav Kapoor
(CA Final Student)
(2977 Points)
Replied 30 June 2011
its revenue expenditure .....i had posted ur question on my page wall....u can refer that too here https://www.facebook.com/CAPassion
Regards
Gourav
if u are a CA passionate, this is for you...CA PASSION
RAKESH
(Almost CA)
(2199 Points)
Replied 30 June 2011
mate saw ur facebook posting . so many replies. 10q for prompt reply.
A G Vishal Kirthic
(Chartered Accoutant)
(236 Points)
Replied 30 June 2011
Hi Rakesh,
Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 30 June 2011
I do agree with Vishal, the stam duty payment in cash does not attract section 40(A)(3). With regard to its nature, it will be added to the cost of the property, and treated in the same way as property is treated.
Vikas
(CA)
(1135 Points)
Replied 30 June 2011
| Originally posted by : Vishal Kirthic | ||
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Hi Rakesh, Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt |
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agree...
CA. Roopali Kadam
(Jobs on assignment basis.)
(1453 Points)
Replied 30 June 2011
| Originally posted by : CA. Rashi Goyal | ||
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I do agree with Vishal, the stam duty payment in cash does not attract section 40(A)(3). With regard to its nature, it will be added to the cost of the property, and treated in the same way as property is treated. |
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Agreed
CA Mukesh Jain S
(Chartered Accountant in Practice)
(692 Points)
Replied 30 June 2011
It is covered in rule 6DD exemptions. So 40(A) (3) is not applicable
CA Mohit Saxena
(FINANCE MANAGER)
(343 Points)
Replied 30 June 2011
| Originally posted by : CA Mukesh Jain S | ||
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It is covered in rule 6DD exemptions. So 40(A) (3) is not applicable |
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completely agreed
| Originally posted by : Vishal Kirthic | ||
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Hi Rakesh, Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt |
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agreed
Paras
(Mcom,CA Final)
(122 Points)
Replied 01 July 2011
Capital expenditure .... added to the cost of the asset .
Shaily Jain
(Chartered Accountants)
(1054 Points)
Replied 01 July 2011
It doest attract becasue its payment to govt.
CAclubindia
