Payment more than 20000

No remedy , any revenue expenditure crossing the limit of Rs. 20000 shall be disallowed.

You can do one thing, pay less than 20,000 on one day and remaining on any other day.( ie, rectify the entry in the books)

No remedy, whole expenditure of Rs. 25000/- will be disallowed.

Miss Paral Saxena

Mr. Himanshu and Mr. Bansal both are right ,

U/S 40 A(3) of income tax act  exp will be disallowed above then of  Rs. 20000/-, 

Entire amount disallwoed

if you want to make it as allowed just alter it to two vouchers and paid to two different persons

or split it to two dates so that no place it exceeds 20000

Giving respect to the right answers already given above, I just want to add that if he (the mechanic) is operating at low level, then either he would be issuing no invoice or on request of yours he can issue part invoices. In both of the cases (if any applies on you) you can claim the deduction.

Thanks.

This is my point if the mechanic is operating at low level then he would not issue any invoice then if the expenditure is more than 20000/- can the co.claim deduction?

Miss Parul

1- Please understand without invoice how u rembresh  the such exp

2- This is a revenue expenditure

3-Such exp is incurred for car repairing charges, which are related to CO. not personal 

4- Maximum limit u/s 40A (3) is rs. 20000  (per day)

It looks so unpracticle but we have to admit as per Income Tax, this will be Dissallowed

:-) no remedy as yet. other than manuplation of entries etc.

regards

Theoritically, Mr. SS Rawat is absolutely correct but practically, if the mechanic is operating at low level and issues no invoice, then the expenditure of repairs and maintenance can be claimed in two installments so as to allow the whole amount as Revenue Expenditure.

PS: ITO generally do not care about these petty expenses. Further he is not gonna inspect the mechanic for the expenses.

Thanks.

Dear ssrawat,

How to prepare salary slip. Monthly salary is Rs. 90000......and how to deducted tds on salary Rs.90000

Regards,

raju

Hi Friend

I m not getting your point.

Rgds

Shiv

please make it clear.. the invoice is for Rs. 25000/- . Now the we will make payment in two date.. say Rs. 15000 and Rs 10000. Ok. now my query is whether the invoice no. is same or two separate invoice..