Expense disallowed or not

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RAKESH (Querist)
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28 October 2021 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 .

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2021 It will be disallowed, being single bill.

RAKESH

RAKESH (Querist)
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28 October 2021 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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2021 Yes, but partly true.
For that your bill amount has also to be below 10K. (corresponding to each particular day.)

RAKESH

RAKESH (Querist)
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28 October 2021 Sir can this rule will apply to capital expenditure also .

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2021 Yes, u/s. 43(1) of IT act..

RAKESH

RAKESH (Querist)
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29 October 2021 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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 October 2021 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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