banner_ad

Dis- allowance expenditure

Tax queries 269 views 5 replies

Respected professionals please clarify my doubt regards disallowance expenses under section 40(A) 3 

During my audit verification i had found that one expenditure made my business towards JCB works

Invoice issued by Sri Earth Movers on 15.07.2021 of r.s 14000. payment was made by the business entity on 16.07.2021. These payments were settled on two times on same day 9000& 6000 respectively ( Received by Different persons on same bill)  whether it should be allowable expenditure or not.

And also clarify that Disallowance should be calculated on invoice basis or person basis 

Replies (5)
No the expenditure will be disallowed as payment exceeds 10000 rupees in cash as under section 40A(3) tells that payment should be made upto 10000 rupees in cash in a single day in a transaction. But in this case payment is 15000 rupees in cash so it will be disallowed

Were both the payments received by such "different persons" on behalf of Shri Earth Movers? Or are they made to a third party altogether on behalf of Shri Earth Movers?

payments are received by the different persons on behalf of the sri earth movers on single bill

In that case, entire amount would be disallowed.

Then it will be disallowed


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details