diallowance u/s. 40A (3)
This query is : Resolved
16 July 2009
In one of the company, many payments are made exceeding rs. 20000 against the same bill. Is there any way by which such entries can be changed so that the disallowance u/s. 40A (3) is not attracted.
Plz answer this as soon as possible.
Plz answer this as soon as possible.
vinod kumar lalwani
(Expert)
16 July 2009
hello!
It is required by the act that
payment in a day
to a single person
for same bill
should not be made for more than 20000 in cash.
so to comply with all requirements u have to change the date of entry in your records.
It is required by the act that
payment in a day
to a single person
for same bill
should not be made for more than 20000 in cash.
so to comply with all requirements u have to change the date of entry in your records.
Abhishek Mohta
(Expert)
16 July 2009
You have to split the entries into two or three and pass them on different dates. Or the expenses can be allowed if you can prove that there is no banking facilities available near to the premises wherefrom the payments were made.
The problem arises that if you change the entries and split into different dates your cash balance for the day would be affected.
As per the provisions of the sec the payment should not be one time payment or the cumulative payment for the day. If the payment is made on different dates and against the same bill then it is allowed.
The problem arises that if you change the entries and split into different dates your cash balance for the day would be affected.
As per the provisions of the sec the payment should not be one time payment or the cumulative payment for the day. If the payment is made on different dates and against the same bill then it is allowed.
16 July 2009
make sure that you should not pay more than rs.20000 in cash to same person.
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