diallowance u/s. 40A (3)

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JANKI (Querist)
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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.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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16 July 2009 Make the amount of the entries each day below 20,000/-.

JANKI

JANKI (Querist)
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16 July 2009 Thanks for your answer, but when the bill amounts to rs. 100000 or more & there are many such bill which can run to cores of rupees this treatment does not work. so kindly suggest that is there any other way out.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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16 July 2009 There is one another option - Payment of Bills on Public Holidays.

JANKI

JANKI (Querist)
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16 July 2009 I am aware of this option also. but the problem is that we cannot show this much of high expenses on public holidays as this may create side effects in case of scrutiny.

is there any way that this payments exceeding rs. 20000 does not reflect in b/s. only.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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16 July 2009 Then there is no other option, unless you prove that there is no other mode of payment available.

CA Bosu babu

CA Bosu babu (Expert)
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16 July 2009 Give cheques ya....(kiddin)

you hav the followin options,

1.Pay the bill for 2 days ex:19000, 19500 on consective days,

2.pay through agents....ask agents to pay on public holiday....you can reimburse them on anyday for any amount....

3.this is illegal but i observed in our one of client(i.e., payment to same party only but names will be different...for example if one technician is there then they will show as there are 2 technicians and will pay) like that ....but i dont prefer this....

answer to ur question:
keep payments on different dates

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