payment above 20000/-

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HARSH

HARSH (Querist)
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17 June 2010 If a transport company pays Rs. 22000/- in cash for purchase of Air conditioner will it be allowed or not

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 June 2010 Section 40A(3) does not apply to expenditure which is not to be claimed as deduction u/s 30 to 37.
Purchase of air conditioner is capital expenditure.
Under section 37, only revenue expenditure is deductibele.
Hence 40A(3) is not applicable to purchase of air conditioner.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 June 2010 But Mr.Bansal sec.40A(3) applicable even assessee purchase depreciable asset bycash more than Rs.20000 becasue depreciation claimed under sec.32.can you please clarify

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 June 2010 Thank for correction Mr. Ramesh.

Section 40A(3) is not applicable for those capital asset which not depreciable asset like land.
Sorry for above reply

HARSH

HARSH (Querist)
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17 June 2010 kindly solve my query

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 June 2010 40 A(3) APPLY ON IT. HENCE IT IS DISALLOWED.

HARSH

HARSH (Querist)
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17 June 2010 i heard that transporter are given an allowance for expenditure incured in cash of Rs. 35000/-

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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17 June 2010 LIMIT OF RS. 35000/- IS IN CASE OF TRANSPORTATION OR FREIGHT CHARGES, NOT FOR PURCHASE

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