about section 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 Dear Sir,

My question is that

A company purchase goods from Mr.y on 10/09/2014 through bill No. 12,13 respectively amt Rs. 18000,25000. on 12/09/2014 company also purchase from same party through bill no. 16 amt rs. 22000 and next day purchase through bill no. 18 amt rs. 25000.

on 20/09/2014 company make payment of rs 81000 in cash at same time (assuming that payment of bill amt is 18000+21000+20000+22000)

can this expenditure is allowed u/s sec 40a(3) or not?
and ans is different if company make expense instead of purchase.

please make answer as early as possible

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 September 2014 if total payment made is exceeding rs 20,000 then yes sec 40A(3) is applicable.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 ideally only two of the invoices should be disallowed. However, there is a good chance that AO may disallow the whole of the payment made.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 Thanx Sir,

Answer is also same if payment make for expense not for purchase.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 yes. the answer is same...............

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 September 2014 yes ans also applicable for exp........

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