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Sec 40A(3)

This query is : Resolved 
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(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
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
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

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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.
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Balakrishnan

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Balakrishnan (Expert)
17 December 2010 i think there there is no exemption. as suggested you have to make accepting chq.
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Aditya Maheshwari

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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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