A company gives advance to its employees in their bank accounts in normal course of business as part of TA DA expenditures. Employees go on tours and spend money in cash for various payments more than 10000 eg. for hotel payment etc.
on returning from tour, company settle this advance amount with expenses of employees based on proofs.
Now question is - Whether this payment in cash by employees more than 10000 will attract provisions of section 40 A 3 and will cause disallowance of expenditure for the company.
kindly suggest.
CAclubindia
