40A(3)

Hi to all,

We are dealing in the milk related products , and the min problem here is that , the branches pay a lumpsum amount to a distributor , who inturn distributes i t to the suppliers of milk i.e the farmers , and now whether that 3,00,000/- amount paid to distributor in lieu of the farmers is a allowed or disallowed exp,, and in that payment to farmers a detailed division is given of which the amounts are more than 20k so kindly clarify