payment above 20000/-
This query is : Resolved
17 June 2010
If a transport company pays Rs. 22000/- in cash for purchase of Air conditioner will it be allowed or not
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.
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
(Expert)
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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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
Section 40A(3) is not applicable for those capital asset which not depreciable asset like land.
Sorry for above reply
17 June 2010
40 A(3) APPLY ON IT. HENCE IT IS DISALLOWED.
17 June 2010
i heard that transporter are given an allowance for expenditure incured in cash of Rs. 35000/-
CA Ashok Kumar Sahu
(Expert)
17 June 2010
LIMIT OF RS. 35000/- IS IN CASE OF TRANSPORTATION OR FREIGHT CHARGES, NOT FOR PURCHASE
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