Section 40(a)3 confusing too much

Hello Friends,

I have recently started my articleship. I want to know some clarifications on Section 40(A)3.

 

1.The limit of Rs 20000 is it applicable for Purchases of Goods in trade?

2.What if payment is made by Cash Cards like ITZ and DONE?

3.To transport the limit is Rs 35000. So if payment is made for two trucks (for sure two diffrent truck numbers) belonging to same owner that in combination exceed Rs 35000. Then will this be allowed or disallowed? मतलब जब ३५००० की limit देखते तो एक  ट्रक को ध्यान में रखते या एक ट्रक owner को 

 

Replies (4)

1) yes applicable

2) no idea

3) if 2 different bilty are issued then 40A(3) nt appl bt if in same invoice ,then appl

Originally posted by : Amit Gupta

1) yes applicable

2) no idea

3) if 2 different bilty are issued then 40A(3) nt appl bt if in same invoice ,then appl

i think incase of 2nd one it will be allowed

cheers

thank u amit and arniv!!!

Section 40A(3) says that if payment is made in otherwise than through account payee cheque then restriction is applicable.

2nd point

If payment is made through cash card etc then restriction shall be applicable.

3rd query

Restriciton shall apply if payment in excess of Rs. 20,000 in a single day to a same person. Therefore one truck/two truck or bilty/invoice is immaterial. 

thanks

https://taxbykk.blogspot.com/

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