Cash payment query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2016 Hi Experts
Tax invoice received from a vendor on account of purchase of CC tv cameras for Rs. 35,749/- dated 11.06.15
Cash paid on 15.06.15- for 20k
cash paid on 15.07.15- for Balance and received cash receipts as well.

is it ok?

Please confirm

bharath

bharath (Expert)
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17 June 2016 Hi,
Cash paid on 15/06/2015 Rs. 20K is not ok, as per sec 40A (3)(a) of IT act if cameras are being grouped under expense account, if cameras are taken as asset then it has no issue, payment made towards purchase of asset is not covered under sec 40A (3)(a).

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2016 it is treated as assets only so we need not to worry right?