SECTION 40A(3)
This query is : Resolved
12 December 2009
CAN ANY ONE TELL.
CAN PAYMENT FOR THE PURCHASES CAN BE MADE IN CASH
AND ALSO EXPLAIN WHETHERE DEPOSITING THE CASH TO THE PARTIES BANK ACCOUNT UNDER CORE BANKING SYSTEM AMOUNTS TO CASH PAYMETN.
CASE.
PARTY DEPOSITED RS 100000 TO THE BANK ACCOUNT OF THE SUPPLIER BY CASH UNDER CORE BANKING SYSTEM WHETHERE THIS AMOUNTS TO CASH PAYMENT
CAN PAYMENT FOR THE PURCHASES CAN BE MADE IN CASH
AND ALSO EXPLAIN WHETHERE DEPOSITING THE CASH TO THE PARTIES BANK ACCOUNT UNDER CORE BANKING SYSTEM AMOUNTS TO CASH PAYMETN.
CASE.
PARTY DEPOSITED RS 100000 TO THE BANK ACCOUNT OF THE SUPPLIER BY CASH UNDER CORE BANKING SYSTEM WHETHERE THIS AMOUNTS TO CASH PAYMENT
12 December 2009
No, the payment for purchases cant be made in cash except as referred in rule 6DD. Kindly refer the same.
Amount Rs.1 lacs deposited in cash by purchaser to the bank a/c of supplier would amount to cash payment.It is like the same thing as paying in cash to the supplier and then supplier depositing the same into its bank a/c.This type of payment not as per the payment through the banking system as mentioned in Rule 6DD hence would tantamount to cash payment
Rgds
CA Amitabh Gupta
Indore
ag_ind@rediffmail.com
Amount Rs.1 lacs deposited in cash by purchaser to the bank a/c of supplier would amount to cash payment.It is like the same thing as paying in cash to the supplier and then supplier depositing the same into its bank a/c.This type of payment not as per the payment through the banking system as mentioned in Rule 6DD hence would tantamount to cash payment
Rgds
CA Amitabh Gupta
Indore
ag_ind@rediffmail.com
12 December 2009
Yes 40A(3) will be applicable in your case
Purchase is in the nature of exp. hence section 4A(3) will be applicable on purchase.
further section 40(3) applicable if the payment is made in cash,
your case is also treated as payment by cash,
Purchase is in the nature of exp. hence section 4A(3) will be applicable on purchase.
further section 40(3) applicable if the payment is made in cash,
your case is also treated as payment by cash,
12 December 2009
cash deposited directly to supplier account then there it will not be treated as cash payment. Some case law is there of this.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- Taxable or Tax exempt
- ADVANCE PAYMENT OF ADVOCATE
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- TDS Deducted AY-2013-14 Not Reflected in 26as
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- Filling ITR - U
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
