Cash paid for truck exceeding 20000
This query is : Resolved
CA Sahil Singla..
(Querist)
05 March 2011
SIr
The Co. Purchased a truck & remitted amount exceeding Rs. 20000 on a Single Day against one bill.please tell me whether such action on the part of Co. will lead to any Disalloance Under IT Act,1961 ?
The Co. Purchased a truck & remitted amount exceeding Rs. 20000 on a Single Day against one bill.please tell me whether such action on the part of Co. will lead to any Disalloance Under IT Act,1961 ?
Ram Avtar Singh
(Expert)
05 March 2011
Cash paid on Purchase of capital goods allowable.
Message likes :
1 times
CA Sahil Singla..
(Querist)
05 March 2011
Is th cash for capital goods always allowed ? according to me there must be special circumstances under wich such action can be taken...for e.g a bank holiday, or a distant place where it's not possible to settle transaction without cash payment...if cash is allowed for capital assets then there is no proper essence behind 40A (3)...the main motive of restricting cash transations by IT act is lost........
CA PARAS BAFNA
(Expert)
05 March 2011
You are right in asserting your opinion.
CA. Lohith Jagadeesh
(Expert)
11 March 2011
Hi,
Appreciate your view, however the Section is not applicable to Capital Goods as purchase of capital goods by cash or otherwise cannot be factored into to compute the Taxable Business Income.
Thank you,
Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Appreciate your view, however the Section is not applicable to Capital Goods as purchase of capital goods by cash or otherwise cannot be factored into to compute the Taxable Business Income.
Thank you,
Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
