query about section 40a
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 November 2010
hi,
i have a query regarding section 40a.. suppose a company pay to its employee Rs 50,000 in cash as imprest..and then that employee incurs an expenditure on behalf of a company for a Rs 45,000 (one single bill). the company books such a expendidute in its profit and loss account...
indirectly company incures expenditure for more than 20,000 in cash...
will it be disallowed as expenditure....
kindly clarify...and if possible give reference to any case laws(if any)..
thanks and regards
i have a query regarding section 40a.. suppose a company pay to its employee Rs 50,000 in cash as imprest..and then that employee incurs an expenditure on behalf of a company for a Rs 45,000 (one single bill). the company books such a expendidute in its profit and loss account...
indirectly company incures expenditure for more than 20,000 in cash...
will it be disallowed as expenditure....
kindly clarify...and if possible give reference to any case laws(if any)..
thanks and regards
CA.ViVeK M ACA
(Expert)
01 November 2010
It is disallowed item of expenditure. Please read closily with 40 A (3)
It is 100% disallowed items under tax laws
It is 100% disallowed items under tax laws
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