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Expense disallowed or not

This query is : Resolved 

Suppose we have a bill of rs 90000/- from x ltd co . and we are making the payment to him in the installment of Rs 9000 each on different date , can we do so . or there is disallowed under income ta xact .

It will be disallowed, being single bill.

Sir if i am not wrong , i have read if any payment is made to single person on a single day exceeding Rs 10 k is disallowed u/s 40a(3) of iT act. pls correct Me sir iam iam wrong

Yes, but partly true.
For that your bill amount has also to be below 10K. (corresponding to each particular day.)

Sir can this rule will apply to capital expenditure also .

Yes, u/s. 43(1) of IT act..

suppose he split the bill of Rs 30000 /- in to three bill of Rs 10000 Each on dtd 01-01-2021. and make the payment of Rs 10000 on different date , in that case expenses is disallowed . Pls clarify.

It gets disallowed if for same goods or service, the bill is split in more than one bill. Secondly, different bills, different dates are preferable.



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