sec 40(3)
This query is : Resolved
15 September 2009
if we purchase trading goods in cash for Rs. 20000 in a day frm a single party will this expense be disallowed u/s 40(3).Payment to creditor of Rs. 20000 in cash is allowed or not.
15 September 2009
not allowed
15 September 2009
Payment in excess of Rs. 20000 is not allowed if paid in cash.
15 September 2009
allowed if up to 20000, after that disallowed
15 September 2009
SECTION 40A(3) STATES ;
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure
NOTE THE WORD EXCEEDS
AS SUCH IF IT IS ONLY 20,000 , NO DISALLOWANCE
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure
NOTE THE WORD EXCEEDS
AS SUCH IF IT IS ONLY 20,000 , NO DISALLOWANCE
15 September 2009
No disallowance as it does not exceed Rs. 20,000/-
15 September 2009
Not Disallowed
17 September 2009
thanks
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
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- SFT Cash Deposit in Current Account
- Copyright software
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
