Sec 40A(3)
This query is : Resolved
MAYUR GOYAL
(Querist)
17 December 2010
Hello Everyone.
One of our client (Pvt. Co.) makes payment for more than Rs.20000/- in a hotel by cash. This is a regular expenditure as they have to stay the foreign suppliers in hotels. Now they want how do deal in this regard u/s 40A(3). They also made payment for air tickets that too is more than Rs.20000/-.
So,can anyone suggest me how to tackle this matter??
Thanks
One of our client (Pvt. Co.) makes payment for more than Rs.20000/- in a hotel by cash. This is a regular expenditure as they have to stay the foreign suppliers in hotels. Now they want how do deal in this regard u/s 40A(3). They also made payment for air tickets that too is more than Rs.20000/-.
So,can anyone suggest me how to tackle this matter??
Thanks
17 December 2010
If payment is not realeased directly by the company ( means through employee or directors ) to hotel or travel agency, sec 40A(3) will not be applicable.
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Aditya Maheshwari
(Expert)
17 December 2010
Make payments by way suggested above i. e. reimbure expenses incurred by cheque or start making payment by credit card.
Message likes :
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Balakrishnan
(Expert)
17 December 2010
i think there there is no exemption. as suggested you have to make accepting chq.
Aditya Maheshwari
(Expert)
17 December 2010
The employees can make payment in cash and then the company reimbuses via cheque to them.
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