Cash expenses above rs 20000 settled by advances

Hi,

can someone clarify this please

1. Cash advance paid rs 19000 on 01-04-2017

2. Expense settled on 05-04-2017 for Rs 26000 where expenses is accounted for Rs 7000

Is section 40 a 3 attracted on 05-04-2017??

Replies (5)

Depends upon receipt of Rs. 7000/-. If by cash, yes.

Upon the final bill of Rs 26000. the remining amount Rs 7000 was also paid in cash.

Sir can you pl tell why u have mentioned "Receipt of cash" .

Yes, when paid by cash means total amount settled by cash, though in different years, but it attracts section 40A(3). It was by chance mistake, but  meant for payment.

ok smiley.

Thank you very much sir for your valuable input..

 

 

Most welcome.

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