section 40 A (iii)
This query is : Resolved
14 June 2011
Payment exceeding 20000 for assets purchase allow or not
if yes (beacause of this limit for business exp. then this assests depreciation can charge in P& L A/C
if yes (beacause of this limit for business exp. then this assests depreciation can charge in P& L A/C
16 June 2011
There are some exemptions in Sec 40A(3) where payments can exceed Rs.20000 in cash.
As per your query, If any one needs to purchase a capital asset then the same may be purchased with cash even it exceeds Rs.20000/-.
The depreciation can be charged in P&L A/c on the assets purchased through cash.
Please let us know if you have any questions on this.
Thanks,
CA M Sreenivasa Rao
R&S Associates
09866717710
As per your query, If any one needs to purchase a capital asset then the same may be purchased with cash even it exceeds Rs.20000/-.
The depreciation can be charged in P&L A/c on the assets purchased through cash.
Please let us know if you have any questions on this.
Thanks,
CA M Sreenivasa Rao
R&S Associates
09866717710
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