fixed asset purchase (in cash)

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This query is : Resolved

seema wadhwa (Querist)

25 May 2011 company purchased fixed asset and made payment in cash in excess of Rs. 20000
whether cash payment in excess of Rs. 20000 allowed or not for purchasing fixed asset

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

25 May 2011 For purchasing fixed assets cash payment can be made in excess of 20000/-

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

25 May 2011 Purchase of Fixed asset is capital expenditure. This is a balance sheet item and not P/l item. So you can purchase fixed assets by Cash payment exceeding Rs 20000/- no disallowance u/s 40A(3) of the IT Act, 1961.

CA.AMAR MOHAPATRA

CA.AMAR MOHAPATRA (Expert)

25 May 2011 strongly agreed with paras sir n sanjay sir

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)

29 September 2013 is there any reporting required by the company law for purchasing the fixed assets for consideration of cash which is in excess of Rs. 20000

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