40a(3) applicability for purchase of buffalo

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This query is : Resolved

Somanath Hiremath (Querist)

01 February 2016 Respected Sir,

One of our client is dealing in purchase & Sale of buffaloes.He had made payment in cash for purchase of buffalo above 20,000/-. Whether Rule 6DD is applicable for my client. Whether payment will be disallowed under section 40a(3)

praveen

praveen (Expert)

01 February 2016 Yes he is into business and cash payments exceeding Rs.20000 will be disallowed. However, you need to check the provisions of Rule 6DD if you can find any exemptions that can be applicable to your client then you can claim the same.

Somanath Hiremath

Somanath Hiremath (Querist)

01 February 2016 In the rule 6DD include where the payment is made for the purchase of the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; Whether live stock inculde buffalo

praveen

praveen (Expert)

01 February 2016 Yes livestock includes buffalo

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