Sec 40a(3)
This query is : Resolved
15 April 2014
suppose a person make several purchases in a SINGLE day against different bills from a same vendor-
on the date of 1/4/2013
bill no.100 Rs-12000
bill no 124 Rs-18800
bill no 138 Rs-19000
and payment made on 5/4/2014 for all bills i,e 49800.
so plz guide me that this expense is to be disallowed or not u/s 40A(3).
on the date of 1/4/2013
bill no.100 Rs-12000
bill no 124 Rs-18800
bill no 138 Rs-19000
and payment made on 5/4/2014 for all bills i,e 49800.
so plz guide me that this expense is to be disallowed or not u/s 40A(3).
15 April 2014
total amount exceed above rs. 20000/- then all bill payment will disallow u/s 40a(3)
15 April 2014
but sir i am in confusion because as per taxmann reckoner under scope of sec40A(3)laid down that -
if an assessee makes payment of 2 differents (none of them exceeds 20000/-) at the same time in cash or by bearer cheque /draft ,sec 40a(3) is not applicableeven if the aggregrate payment is more than 20000.
in other words unlessthe amount of bill and the amount payment exceed 20000 sec 40a(3) is not applicable
if an assessee makes payment of 2 differents (none of them exceeds 20000/-) at the same time in cash or by bearer cheque /draft ,sec 40a(3) is not applicableeven if the aggregrate payment is more than 20000.
in other words unlessthe amount of bill and the amount payment exceed 20000 sec 40a(3) is not applicable
15 April 2014
but sir i am in confusion because as per taxmann reckoner under scope of sec40A(3)laid down that -
if an assessee makes payment of 2 differents (none of them exceeds 20000/-) at the same time in cash or by bearer cheque /draft ,sec 40a(3) is not applicableeven if the aggregrate payment is more than 20000.
in other words unlessthe amount of bill and the amount payment exceed 20000 sec 40a(3) is not applicable
if an assessee makes payment of 2 differents (none of them exceeds 20000/-) at the same time in cash or by bearer cheque /draft ,sec 40a(3) is not applicableeven if the aggregrate payment is more than 20000.
in other words unlessthe amount of bill and the amount payment exceed 20000 sec 40a(3) is not applicable
15 April 2014
as such no disallowance is required because there are three separate expenses for which payment has been made. The section takes about an expense. So if you have multiple invoices, so you can make payment against them in cash as long as each invoice is less than Rs 20000
however, there was been instances of splitting payment or splitting the invoices to avoid 40a(3). in such cases disallowances have been made.
however, there was been instances of splitting payment or splitting the invoices to avoid 40a(3). in such cases disallowances have been made.
15 April 2014
but suppose even if sep payment is made but the party is same then disallowance is attracted.
16 April 2014
@ NIKHIL KAUSHIK SIR .,
BUT SIR AS PER ICAI STUDY MATERIAL ..IF AGGREGRATE PAYMENT IN CASH TO A SINGLE PARTY FOR ANY EXPENSES IN A SINGLE DAY EXCEEDS 20000/- WILL BE DISALLOWED.
SO WHY THERE IS DIFFERENCE BETWEEN TAXMANN RECKNOR AND ICAI STUDY MATERAIL
.
BUT SIR AS PER ICAI STUDY MATERIAL ..IF AGGREGRATE PAYMENT IN CASH TO A SINGLE PARTY FOR ANY EXPENSES IN A SINGLE DAY EXCEEDS 20000/- WILL BE DISALLOWED.
SO WHY THERE IS DIFFERENCE BETWEEN TAXMANN RECKNOR AND ICAI STUDY MATERAIL
.
19 April 2014
THERE IS NO DIFF. MATER IS SIMPLE THAT YOU CAN NOT MAKE PAYEMNET EXCEED RS. 20,000/- IN DAY TO A PERSON IN CASH AND NOT THE PURCHASES OF EXCEED RS. 20000/- AGST
A SINGLE BILL.
A SINGLE BILL.
19 April 2014
well the position is clear, different authentic bills are not to be clubbed.
21 April 2014
no it is not applicable for capital expenditures.
24 April 2014
whether depreciation on capital expenditure would be disallowed as depreciation is covered as deductible expense u/s 32 ???
24 April 2014
depreciation cannot be disallowed....
25 April 2014
depreciation is dealt by sec 32 and not by section 40A(3).
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