40a(3)

This query is : Resolved

Anoop.V.P

Anoop.V.P (Querist)
Follow

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.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

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).

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
Follow

07 January 2014 Agree with Abhishek.
.
The sections covers only the
EXPENDITURE
.
.....not the RECEPIENT.
.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

svgovindaraju

Krishna Kumar A

Samruddhi Agrawal

R NATARAJAN

Amogh Gokhale

Subscribe Now

40a(3)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Manager- Finance and Compliance

Accountant

GST CONSULTANCY

Senior Executive

CA Final