In simple words
Yes Depreciation is allowed
Because Depreciation is Non-cash Expenditure.
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 17 March 2013
In simple words
Yes Depreciation is allowed
Because Depreciation is Non-cash Expenditure.
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 17 March 2013
Sec.40(A)3 is not applicable for purchase of capital asset not meant for sale
Reference:Circular no.34 dated 05/03/1970
Please find attached to download
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 17 March 2013
Applicability of Sec.40(A)3
So as per circular,
Disallowance under sec 40(A)3 for the payment made in the cash exceedin Rs.20,000 (35000 for payment of goods and carriage ) attracted only incase of revenue expenditure .
If the same is made for procuring Fixed assets like Building,plant and machinery and laptop whatever Then section 40(A)3 not applicable
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 17 March 2013
OTHER DOUBTS ON SEC 40(A)3 AND SOLUTIONS TO THEM
ELECTRICITY BILL PAID IN CASH -SEC.40(A)3
PAYMENT TO A PARTY MORE THAN 20000 THROUGH NET BANKING
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
