Computer purchased by cash in excess of Rs.20000/-.

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This query is : Resolved

Guest

Guest (Querist)

27 December 2010 Dear Friends & Experts,

A, an individual is running an automobile workshop.

A bought for workshop, a computer for Rs.22000/- by cash.

Query

1. Is there any violation in the purchase of computer by cash (in excess of Rs.20000/-) ?

Ans : …………………

2. If it is a violation, what is the impact and remedy for the same.

Please note, A is an individual.

I shall wait for the Experts’ expert replies.

Thanks.
DK.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 December 2010 1. yes voilation of sec 40A(3).

2. Remedy depends on circumstances od payment.

Guest

Guest (Querist)

27 December 2010 Thank you for the response.

Impact :
Is it that depreciation for the computer not possible ?

Ans : ................

Remedy :
Please advise how to proceed.

Ritasha

Ritasha (Expert)
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27 December 2010 Since computer in ur case is a capital good so there is no violation.As per circular no 34 dated 5.3.1970 the provisions of sec 40A(3) do not apply towards purchase of capital assets not meant for resale.

Further views are solicited.

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
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27 December 2010 NO VIOLATION OF 40a (3) BECAUSE IT IS NOT AN ALLOWABLE EXP HENCE NO MATTER IT IS PURCHASED IN CASH OR NOT . AND DEP WILL BE CLAIMED DEFINATELY

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