payment exceeding rs.20,000
This query is : Resolved
16 May 2008
CASE
one company doing transpot business on contract basis, When they got contract for sending goods it make sub-contract against contract for sending goods to destiy with lorry owner and for which it become mentetory for him to make payment in Cash to driver for petrol and fro other expenses and after wards they have no contact with party and further he got lorry which is available at the time of sending the goods which is chipest.
Here many time the payment made to driver exceed 20000
whether it is disallowe U/S 40A(3)?
Whether it cover under exception under rule 6DD as tradition of the business?
one company doing transpot business on contract basis, When they got contract for sending goods it make sub-contract against contract for sending goods to destiy with lorry owner and for which it become mentetory for him to make payment in Cash to driver for petrol and fro other expenses and after wards they have no contact with party and further he got lorry which is available at the time of sending the goods which is chipest.
Here many time the payment made to driver exceed 20000
whether it is disallowe U/S 40A(3)?
Whether it cover under exception under rule 6DD as tradition of the business?
16 May 2008
YES.RULE 6DD COVERS TRANSPORT PAYMENTS, DUE TO THE NATURE OF BUSINESS OF TRANSPORT WHERE WE CANNOT EXPECT ALL TRUCK DRIVERS TO HAVE BANK ACCTS AND ATM CARDS .
R.V.RAO
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- RELATED TO TRIBUNAL APPEAL
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- Sec 44ada applicable only or both
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- GST Rate for Catering Services
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
