Payment exceed 20,000/-


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Querist : Anonymous

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Querist : Anonymous (Querist)
20 November 2012 company purchase a fixed asset on credit and then make a payment but payment exceed by 20000/-.

whether any dis allowance has been made?

20 November 2012 The disallowance u/s 40A(3) is attracted only when payment is made for an expenditure which is otherwise allowed as deduction in computing the profits from business.

Purchase of fixed asset is a capital expenditure and is not allowed as deduction. Accordingly, the payment made for the same will NOT attract disallowance u/s 40A(3).

Further depreciation on such asset shall also NOT be disallowed.

20 November 2012 Yes..Agree with above expert.

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 February 2013 Thank you so much


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