40a(3)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 December 2014
if i pay to same supplier for two different invoices of same product in cash in a single day. both are amounting to rs. 19000/- each. is it allowed?
and also clear the consequences if i purchase a machinery by paying more then 20000/- in cash.
Thanking You
and also clear the consequences if i purchase a machinery by paying more then 20000/- in cash.
Thanking You
CA Kumar Mukesh
(Expert)
02 December 2014
If there is two different invoice both below the 20,000 then by making a single payment which exceeds 20,000 then section 40A(3) is not applicable.
Section 40A(3) is not applicable on purchasing capital assets
Section 40A(3) is not applicable on purchasing capital assets
02 December 2014
For capital assets on which depreciation is claimed, Sec 40 A(3) may apply so it is better to avoid cash payments in excess of Rs.20000/- even for capital assets.
CA Kumar Mukesh
(Expert)
02 December 2014
Sivaji Sir, can you quote any case to support your reasoning.
03 December 2014
I read the same in the book of Dr Vinod K Singhania.
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