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Is it Attract 40A(3)

Tax queries 1376 views 12 replies

Hello everyone . Please let me know whether the following attract 40A(3) provisions

A real estate company pays Cash for stamp duty for property registration . is it revenue expenditure or capital expenditure.

Replies (12)

its revenue expenditure .....i had posted ur question on my page wall....u can refer that too here https://www.facebook.com/CAPassion

 

 

Regards

Gourav

if u are a CA passionate, this is for you...CA PASSION

mate saw ur facebook posting . so many replies. 10q for prompt reply.

Hi Rakesh,

Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt

I do agree with Vishal, the stam duty payment in cash does not attract section 40(A)(3). With regard to its nature, it will be added to the cost of the property, and treated in the same way as property is treated. 

Originally posted by : Vishal Kirthic

Hi Rakesh,

Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt

agree...

Originally posted by : CA. Rashi Goyal

I do agree with Vishal, the stam duty payment in cash does not attract section 40(A)(3). With regard to its nature, it will be added to the cost of the property, and treated in the same way as property is treated. 

Agreed

It is covered in rule 6DD exemptions. So 40(A) (3) is not applicable

Originally posted by : CA Mukesh Jain S

It is covered in rule 6DD exemptions. So 40(A) (3) is not applicable

 completely agreed

Originally posted by : Vishal Kirthic

Hi Rakesh,

Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt

agreed

Capital expenditure .... added to the cost of the asset .

It doest attract becasue its payment to govt.

 

It is covered in rule 6DD exemptions, hence section 40A(3) is not applicable


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