Cash payment for the purchase of depreciable asset
This query is : Resolved
CA Santosh Bhagwat
(Querist)
09 October 2009
Dear Sir
If we make payment above Rs. 20000/- in cash for the purchase of fixed asset, then whether provisions of Section 40A (3)are attracted or not?
If it attract then which amount will be disallowed ? & why?
If we make payment above Rs. 20000/- in cash for the purchase of fixed asset, then whether provisions of Section 40A (3)are attracted or not?
If it attract then which amount will be disallowed ? & why?
Shyam Lal Naik
(Expert)
09 October 2009
Since it is a payment for capital expenditure, there is no question of any dis allowance.
09 October 2009
section 40A(3) does not attract
CA Suresh Choudhary
(Expert)
09 October 2009
agree with experts
chetan soni
(Expert)
09 October 2009
but the depreciation is booked as expenses. Hence this amount to indirect booking of cash expenses above 20K. Hence the depreciation on such asset will be disallowed u/s 40A(3).
Its my opinion.
Its my opinion.
Shyam Lal Naik
(Expert)
10 October 2009
Beg to disagree that depreciation will be disallowed.
Depreciation is neither an expense or expenditure. It is an allowance.
The captioned section is not applicable to an allowance.
Depreciation is neither an expense or expenditure. It is an allowance.
The captioned section is not applicable to an allowance.
Aditya Maheshwari
(Expert)
10 October 2009
40A(3) not applicable on assets purchased
Ratan Sharma
(Expert)
10 October 2009
Sec. 40A(3) not applicable.
Ashraf Valappil
(Expert)
13 October 2009
40A(3) not applicable. pls do not connfuse students
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