Sec 40A(3)

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pallavi gupta (Querist)
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11 August 2009 1) one of client had made cash payment of Rs 24000 in respect of Sale Promotion Exp to a Hotel (lodging & fooding). The entire amount is disallowed under sec 40A (3). If he makes 2 vouchers on different dates then the same would be allowed??

2) A machine installer comes from different city and stays for 2 days. The co. has debited Travelling Exp A/c inrespect of his Lodging and fooding.

In my opinion the same is not correct . is it ?

Jitender

Jitender (Expert)
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11 August 2009 1. then it will be allowed.
2. it is wrong as same should be taken to boarding & lodging

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Gokul

Gokul (Expert)
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12 August 2009 1) u can also ask two differant bills for Lodging & Fooding whose amt will be less than 20000/- per bill and against the same bills u can paid such exp. by cash in a singal day which is allowed in section 40A(3).

2) If machin is purchased newly, and the machin installer came for installation of same machin, then it should be capitalised with the cost of machin. If the machin installer came for reinstallation then such exp. should be debited to lodging & fooding.

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