TDS and 40A(3)

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Dhruv (Querist)
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07 July 2009 two bills of RS 18000 and 12000 of different days are paid on a same day in cash. will 40a(3)be attracted ?

two bills of RS 18000 and 12000 of contract raised on different days are paid on a single day . Is TDS liable to be deducted ?

Ratan Sharma

Ratan Sharma (Expert)
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07 July 2009 Hi Dhruv.
1. As payment of both the bills are made on the same day and total amount exceed Rs. 20,000/- therefore it will be disallowed u/s. 40(a)(3).
2. As both the bills are below Rs. 20,000/- No TDS is required to be made u/s. 194C.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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07 July 2009 it will not be disallowed as bill amount for each bill is less than 20000.

tds is not deductible.

Ratan Sharma

Ratan Sharma (Expert)
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07 July 2009 There is an amendment in sec. 40(a)(3) that if the payment is made in a single day in excess of Rs. 20000/- , even in installments below Rs. 20000/- then the same will be disallowed.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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07 July 2009 1)Sec.40(A)(3) is attracted.It will be disallowed.

2)TDS is not applicable.

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