LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Query for s.40a(3)..payment exceeding 20000/35000

Ayushi Agarwal (Article) (161 Points)

23 February 2013

If I am paying Rs.30000 for Flight fare in cash, will it be disallowed as it exceeds rs.20000 or will be covered under Payment to Transporters....Please Clarify.

Reply
Follow
Share

6 Replies

CA MANISH AGRAWAL (Practice) (539 Points)
Replied 23 February 2013

this is disallow ,transporter means road carries as i think....

1 Like

Sumit (None) (56 Points)
Replied 23 February 2013

Yeah.. I agree wid Manish... Transporters include road transport n not d transporters carrying passengers.. Transporters include only goods carrying transport.. I guess.... So dis is disallowed...

1 Like

CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
Replied 23 February 2013

Yes agree with Manish and Sumit. Transporter can in no way mean flights. In fact the Second proviso to the section inserted by Finance Act,2009 has clearly states that "Provided further that in the case of payment made for plying, hiring or leasing goods carriages, the provison of sub-sections (3) and (3A) shall have effect as if for the words "Rs.20000", the words "Rs.35000" had been substituted".

1 Like