Clarification regarding freight paid included in purchases.

This query is : Resolved

Lokesh Vadlani (Querist)
Follow

17 February 2018 A ltd purchased raw materials from Mr.B for Rs.5,40,000/-, which includes freight of Rs.40,000/-. No separate entry regarding Carriage inwards is made in books of accounts. The entire amount was charged to purchases A/c. But however freight of Rs.40,000/- was paid in cash in a single day. Will such amount paid in cash be disqualified U/s 40A(3)? and attract provisions of Sec 194C?.

RAJA P M

RAJA P M (Expert)
Follow

17 February 2018 It's disallowed as per recent amendment...

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
Follow

17 February 2018 Since cash payment exceeding Rs.10,000 is made in a day, the entire amount would disallowed. Further, since freight charges are included in the invoice and the same is treated as cost of purchase, provisions of section 194C may not be applicable. View of others welcome.

RAJA P M

RAJA P M (Expert)
Follow

17 February 2018 Yes.. Section 194C not applicable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anurag Sharma

Shraddha Pangam

J.Vijai

sachingurav

Tanishka Khandelwal

Subscribe Now

Clarification regarding freight paid included in purchases.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

Manager- Finance and Compliance

Accountant

Senior Executive

GST CONSULTANCY