Deduction of imperest

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aman (Querist)
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30 April 2012 If amount is given in cash to any person on his imperest a/c exceeding RS20000, Will this be allowable as deduction under head PGBP..??

mahak katyal

mahak katyal (Expert)
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01 May 2012 as per my opinion,amt given on imprest a/c is nth but advance to an employee to carry out certain expenses be it cash or cheque.
Further if the employee expends this amount for any expenditure,exceeding 20k, he should consider not using cash for this amount.
Hence as far as cash given to an employee on imprest would be treated as an advance and would no where be reflected in P&l a/c,henceforth no question of allowability.

the question of allowability arises only on the expenditure done by the employee.

aman

aman (Querist)
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01 May 2012 dont u think this confines the scope of sec43a(3). i dnt think this fulfill the purpose of this section.

mahak katyal

mahak katyal (Expert)
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01 May 2012 let any other expert answer this in this case!
as per me,it goes that way !

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 1. Imprest is an advance. It is NOT an expense so it cannot be disallowed u/s 40A(3).

2. However, when expenses are incurred out of such imprest, such expenses shall be disallowed.

So Section 40A(3) will not get attracted at the time of advance but at the time of booking expense against the advance.

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