1)total freight as per bill dated 5 th april 40000
payment date 5th april 20000
payment date 8 th april 20000
2) on 8 th april another bill was issued of rs 40000
payment on 8thapril 20000
payment on 12 th april 20000
The above two cases are of two separate consignment, transporter is same.
is this the contavention of sec 40A(3)?
ya if accounts are kept on accrual basis..since under pgbp method of accounting is relevant
for the payment made on 8th april the disallowance would certainly attract, as the sectionstates that any payment or aggregrate of paymetns made to a single person exceeds 20k, the disallowance would get attracted.
disallowance u/s 40a(3) shall not be attracted since for payment must be in respect of same bill on one day. since in such case it is in respect of two different bill on 8 april, no disallowance.
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