payment above Rs20000

782 views 14 replies

can any one say me if a company making payment above Rs20000 for business promotion is an disallowable expense?

Replies (14)

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

if the payment is made thru acc. payee chq then it is allowed otherwise disallowed..as per sec40a

Originally posted by : karthikeyan.v


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

agree with it

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

Agree with sandeep.

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

Dear Divya

If payment made in cash than it will disallowed.

If not made in cash than going on the base of nature of transaction.

 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register