40a(3)
This query is : Resolved
30 November 2013
Cash payment of an expenditure exceeding 20000 is disallowed . But what if we purchase fixed assets in cash ? in that case whether depreciation will be allowed or not ?
30 November 2013
Depreciation is not an expence it is allowance
..
no problem to depreciation it is allowed.
.
.
any cash expence more than 20K debit to p&l is disallowed as purchase of fixed asset will not hit p&l so it will be fine
.
.
but it is not proper internal control measure to purchase assets in cash..make cheque payments mandatory if it is more than 20K..
..
no problem to depreciation it is allowed.
.
.
any cash expence more than 20K debit to p&l is disallowed as purchase of fixed asset will not hit p&l so it will be fine
.
.
but it is not proper internal control measure to purchase assets in cash..make cheque payments mandatory if it is more than 20K..
30 November 2013
Dep will be allowed even if asset purchased in cash > 20,000.
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