sec 40A(3)

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venkat (Querist)
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18 July 2008 As i am Tours & Traveling company ,iam paying to GUIDER >Rs20,000(cash payment).wheather this Expenditure is disallowed(As per Sec 40A(3)) r not.

mohinder kansal

mohinder kansal (Expert)
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18 July 2008 As these are expenses incurred during the ordinary course of business, the same shall be under the preview of section 40A(3) and shall be liable to be disallowed in accordance with the provisions of the Act

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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18 July 2008 there is no specific exemption for tours and travelling company u/s 40A(3)

Sambu Suresh

Sambu Suresh (Expert)
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18 July 2008 it is disallowed

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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18 July 2008 The expenditure may be allowable, in case the payment is made to the Guide living in an area like a village which is not having the banking facility. Refer, clause (h) of Rule 6DD which deals with exceptions to Section 40A(3).

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