RTGS - will it be disallowed
This query is : Resolved
25 November 2010
The firm has remitted an amount through RTGS to the bank account of the creditor.
The entry in the books is
Creditor a/c ... Dr
To Cash A/c
We have come to know that the firm has paid the cash to bank for sending the money as RTGS.
The transaction does not appear in the bank statement.
Will this be disallowed under section 40A(3).
The entry in the books is
Creditor a/c ... Dr
To Cash A/c
We have come to know that the firm has paid the cash to bank for sending the money as RTGS.
The transaction does not appear in the bank statement.
Will this be disallowed under section 40A(3).
25 November 2010
If the payment is made through banking channels then no disallowance can be made.
25 November 2010
My doubt is whether it will be treated as direct deposit to bank a/c of creditor.
25 November 2010
I think provisions of 40A(3) will come into play as cash is being paid. But i think if two entries are passed then the purpose may be solved but the same not being reflected in bank statement there is no option for two entries. So disallowable.
25 November 2010
Thanks
:D
:D
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