can any one say me if a company making payment above Rs20000 for business promotion is an disallowable expense?
Dear Divya
if the payment is made by cash ,yes Sec 40A (3) will get attracted and the amount paid otherwise than by Account Payee cheque will be disallowed, otherwise if made by cheque it will be allowed
regards
karthi
Thanks Mr. Karthikeyan. an the payment is cash payment only
Dear Divya
all the expenditure gets covered, any item which will appear in the P and L Account will get attracted, there are certain exemptions also available under Rule 6DD, go thru the same
regads
karthi
if the payment is made thru acc. payee chq then it is allowed otherwise disallowed..as per sec40a
| Originally posted by : karthikeyan.v | ||
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agree with it |
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Agree with karthikeyan.v...
yes it is disallowed
if you will make a payment against the single invoice
surely the same will be diallowed
but if there is payment against more invoices of <20000,
the same is not disallowed even if payment >Rs.20000
because the payment & expenditure BOTH must be exceeding 20000.
Payment in cash for revenue nature expenses will be disallowed u/s 40A(3) of the act.but rule6DD also attaracts with the same.
Regards
Manjeet Mehra
CA-Final
payment made through a/c payee cheque and through draft is allowd
payment made above rs 20000 through a/c payee cheque nd demand draft or by credit card or debit card is allowable expense
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