05 November 2008
If an advance to a director is paid in cash of a sum exceeding Rs 20,000.00, for the expenses that he incurs on a business trip, will it be disallowed u/s 40A (3).
Also, if expenses are reimbursed, the reimbursement being more than Rs 20000 in cash will the expense be disallowed?
05 November 2008
If the payees are different and expenditure are different each less than 20000, then it will be viewed within limits. Book them as such
06 November 2008
What is relevant is the quantum of expenditure that is booked. In case the expenditure booked against this advance is, say 25000/- then it will get disallowed.
In case the expenditure booked against this advance is 15000 and balance is returned then the expenditure will be allowed
07 November 2008
If the expense is booked in the following manner :- 1. telephone - Rs 18000 2.Travel - Rs 22000 thetravel expense is incurred to-& - fro, so will it still be disallowed, as the expense was incured on 2 diff dates.
CAclubindia
