Cash expenses exceed 20000/- ( section 43 a (3) )

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This query is : Resolved

Harish Temgire (Querist)

03 October 2013 I have made cash expenses of Rs 32000/- in a single day under different expenses head and different parties.for Exp: - Dt 1 Oct 2013, we made expenses and booked in cash book on same day - Rs 15000/- for food exp paid to XYX hotel, Rs 8000/- to repairs and maintenance to Mr. ABC, Rs 9000/- for printing & stationery purchase paid to LMN enterprises in cash total Rs 32000/-. so will it disallow u/s 43A.

Please advice.
Rgds,
Harishchandra.T
770 980 7070

Guest

Guest (Expert)

04 October 2013 Any payment or aggregate payments made otherwise than by account payee cheque to a single person in excess of rs20000(35000 for transporters)in a single day shall be disallowed.
Accordingly ,as you quoted in your example rs32000 shall be disallowed

Harish Temgire

Harish Temgire (Querist)

07 October 2013 Thanks Vijeta ji, but I have made cash payment to 3 different parties in single day. so will it disallow ?

CA Pallav Singhania

CA Pallav Singhania (Expert)

07 October 2013 No if the payment is made to different parties,
Then there would be no dis-allowances in respect of Section 40{a}3...

Under section 40 A 3 limit is only 20000/- per day per person ...

Guest

Guest (Expert)

07 October 2013 Agree with other expert.Disallowance will be made only if payment to one single party in one day exceeds 20000. If you pay less than 20000 to even 10 parties in a day ,there is no disallowance

Harish Temgire

Harish Temgire (Querist)

07 October 2013 THANKS TO ALL EXPERTS.....

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