Cash amt booked

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2015 Sir,
our company work is construction. we are constructing new commercial building (new project) therefore we are purchasing cash sand, iron & gitti. my query, we are paying cash amt more than 20000/- to sand & gitti vendor. we can book this amt in our book.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

14 January 2015 if this are expenditure which is debited to profit and loss account then will not be allowed sicne its excedding the limit of Rs.20,000 cash as per sec 40A(3)

Amol S Joglekar

Amol S Joglekar (Expert)

14 January 2015 You can very well book this amount in the books of account. The disallowance, if any, shall be done as per the new provisions of Income Tax Act.

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2015 Sir, we are constructing building. these expensese are capital nature & common expnesese. please clear me, we have to book this amt or not

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

14 January 2015 if they are capitalised then these do not take form of expenditure and shall be added to cost of constructing asset and then no disallowance is applicable.