Friends please clarify my doubt regarding Itax sec40(a)3 disallowance.
Q). purchase Rs-30000/- on single invoice made on 20thmay, and payment made Rs-15000/- in 20th of may and Rs-15000/- in 21st of may. is the section 40(a)3 will attract or not?
Q). Advance Payment made on 20th may value Rs-15000/- and Purchases of Rs-30000/- made on 25th may and payment of Rs-15000/- Paid and Remaining amount adjested from advance.. Is section 40(a)3 will attract or not?
Thank You.
In first case the disallowance would not get attracted, becasue the payment against the expenditure of Rs 30k is being made on two different days whihc does not exceeds 20k on one day.
Even in the second case the disallowance would also not get attracted, as the payment against the expenditure of 30k is made on two seperate days not exceeding Rs 20k on one single day.
agreed with Giridhar Sir
O P Bagla & Co LLP
New Delhi
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