40a 3
This query is : Resolved
GOPAL PALIWAL
(Querist)
27 November 2011
dear sir
my query regarding payment of rs 20000/-
WE CAN MAKE THE PAYMENT OF TWO BILL OF 1 IS 19000 AND 2 IS 18000
WE CAN CASH 37000 IN SINGLE DAY ?
IF THIS BILL AMT IS 21000 AND 20000
WHAT IS THE DIFFERENCE
PLEASE GUIDE ME FOR THE SAME
my query regarding payment of rs 20000/-
WE CAN MAKE THE PAYMENT OF TWO BILL OF 1 IS 19000 AND 2 IS 18000
WE CAN CASH 37000 IN SINGLE DAY ?
IF THIS BILL AMT IS 21000 AND 20000
WHAT IS THE DIFFERENCE
PLEASE GUIDE ME FOR THE SAME
27 November 2011
You can make payment of two bill in cash for 1 for Rs. 19000 & 2nd is for Rs. 18000 but these two bills shall not to relate with single person
but you can't make payment for rs. 21000 in cash...it can be make only through account payee cheque as per provisons contained in sec 40A(3).
A assesse can make a payment of Rs. 20000/- in cash for one bill in single day to single person
but you can't make payment for rs. 21000 in cash...it can be make only through account payee cheque as per provisons contained in sec 40A(3).
A assesse can make a payment of Rs. 20000/- in cash for one bill in single day to single person
CA SUMiT PATWARi
(Expert)
27 November 2011
Yes if the payment is being made for two bills of 19000 and 18000 in a single day it will not fall under the purview of Sec 40a3
The wordings used in the provision is "payment for an expense"
So here the payment for each expense is 19K or 18K, not exceeding 20K.
Total payment may exceed 37K, but they constitute two different payments, of which none of them is above 20K, and hence dont get covered under the ambit of 40a3.
This explains the situation where you pay 21000 and 20000, here the payment for "an" expense exceeds 20K. Hence comes under the purview of Sec 40a3
The wordings used in the provision is "payment for an expense"
So here the payment for each expense is 19K or 18K, not exceeding 20K.
Total payment may exceed 37K, but they constitute two different payments, of which none of them is above 20K, and hence dont get covered under the ambit of 40a3.
This explains the situation where you pay 21000 and 20000, here the payment for "an" expense exceeds 20K. Hence comes under the purview of Sec 40a3
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