40a(3)
This query is : Resolved
07 January 2014
A business made the following payments in a day through cash-
advertisement-Rs.15,000/- to Mr.S
commission-Rs.16,000/- to Mr.S
both are same recepient. whether 40A(3) is applicable?
because section 40A(3)states that 'any expenditure' but here the expenditure is different,only the recepient is same.
please clarify it.
advertisement-Rs.15,000/- to Mr.S
commission-Rs.16,000/- to Mr.S
both are same recepient. whether 40A(3) is applicable?
because section 40A(3)states that 'any expenditure' but here the expenditure is different,only the recepient is same.
please clarify it.
07 January 2014
In my view, the words 'any expenditure' and 'such expenditure' indicate that if payment for an expenditure is made in excess of Rs. 20,000/- in a single day in cash then such expenditure shall be disallowed.
Since in your case there are two different expenditures even though the reciepient is the same, it should not be hit by section 40A(3).
Since in your case there are two different expenditures even though the reciepient is the same, it should not be hit by section 40A(3).
07 January 2014
Agree with Abhishek.
.
The sections covers only the
EXPENDITURE
.
.....not the RECEPIENT.
.
.
The sections covers only the
EXPENDITURE
.
.....not the RECEPIENT.
.
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