40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 READ THIS CASE A COMPANY DEDUCTING SOME AMOUNT FROM THEIR EMPLOYEES SALARIES AND SUCH AMOUNT IS PAYING TO PRIVATE LABOUR UNION BEHALF OF ALL EMPLOYEES AS A SINGLE AMOUNT TO THAT UNION IN CASH OF RS.100000 EVERY MONTH.NOW IS THIS ALLOWED AS EXPENSE. AM ASKING BECAUSE ABOVE AMOUNT EXCEED 20000 PLEASE CLARIFY

ca sneha

ca sneha (Expert)
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10 October 2012 In my opinon it will be allowed as no .of employees are paying to single person but it will be disallowed if individual contribution of any employee(labour) exceeds rs 20000/-

and moreover it is adviced that the copmany should pay with account paye cheque or demand draft

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Prakash Kochar

Prakash Kochar (Expert)
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11 October 2012 Company is paying salary to individual employee which is claim of revenue exp. for company. Out of salary of individual employee sum is collected as contribution and paid to union, which is not claimed by company as expenses therefore it will not be covered u/s. 40A(3)in case of Company.

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