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Disallowance of section 40(A)(3) under income tax

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Practicing
126 Points Posted on 07 February 2020
If we incur cash expense on purchase of goods of 75000 (including GST). Can we pay and break the cash payment in 8 days to prevent the disallowance of section 40(A)(3) under income tax.

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On 07 February 2020 at 03:17 Report
Replies (5)
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Practice
3235 Points Posted on 07 February 2020
No.. as expense against which payment needs to be made is more than 10000
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On 07 February 2020 at 08:26
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Studwnt
1141 Points Posted on 07 February 2020
Yes you can make payment on separate dates
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On 07 February 2020 at 11:24
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student
178 Points Posted on 07 February 2020
Not possible ,If supplier gives you cash bill.
If supplier gives you credit bill then you can split the payment.
1 Reply
On 07 February 2020 at 12:04
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student
39 Points Posted on 07 February 2020
Yo cannot split payments against one invoice
if you have separate invoices in your hand against 75000 then only you can pay in cash
otherwise you can pay only 10000 in cash from total of 75000
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On 07 February 2020 at 12:39
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17264 Points Posted on 07 February 2020
For acedamic purpose, you may split the payment and get away from 40A(3) restrictions. But better is cheque/digital online payment.

Hope here you have GST invoice pucca bill and do not have URD bill
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On 07 February 2020 at 12:48


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