My company has paid Rs. 50000/- in cash to the tranporter in a day on behalf of our Customer, Because ultimate liabilites of pay freight is of customer. Now my queri is that " will 40 A (3) be applicable on our co even we are not paid cash agnst our expenditure.
Menu
Disallowance U/S 40 A (3)
Replies (2)
Dear Deepak,
It depends upon the procedure u followed in accounting in ur books -
Case1
If u treat the payment as expenditure & the receipt on this account from the customer as Income in the Profit & Loss A/c then - YES, 40A(3) will apply
Case 2
If u book ur Income with the net amount only & treat the payment as advance to/on behalf of customer...then NO 40A(3) will not apply...
Dear Amir brother is rite.........once again.........
Recent Topics :
- On which amount 200% penalty under section 270A is
- RECEIVED INTIMATION U/S 399 FOR TDS PAYMENT ON PRO
- How do CA firms track SEBI/AMFI circulars and dead
- Jurisdictional validity of Sec 148 notice after fa
- Taxable Income or Not
- GST Input Tax Credit (ITC) on Camera Purchase &
- What makes CA Himanshu Singla different from other
- TAX TREATMENT AND ACCOUNTING ENTRIEOF PERQUISITES
- Gifting money to my father-in-law (my husband's da
- GSTR-1 JSON from marketplace exports (Myntra / Ama
Related Topics :
CAclubindia
