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40(a)(3)

Others 162 views 3 replies
whether or not the provisions of section 40(a)(3) if the assessee gives advance for any expenses to be incurred in cash mode?
Replies (3)
Advance given does not have any impact in p&l(shown as advance in balance sheet),so not disallowed.but the moment you convert the advance to expense ,u get disallowance.

expenses a/c DR
To advance a/c.
hence it has impact on p&l , section 40a(3) get attracted and get disallowed
unless otherwise you claim the advances as expenses in p and l, no role for 40a(3)
but with the receipt of advances only you meet the expenses.


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