Section 40(a)3 confusing too much

Swapnil Jain (Finance - FP&A) (564 Points)

28 September 2011  

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