If a person deposits an amount exceeding Rs. 20,000.00 in the bank account of his creditor towards payment to be made by him to the creditor, will the amount be disallowed?
Menu
Section 40A(3)
Replies (3)
There is no exception in Rule 6DD w.r.t deposit of cash in the account of supplier/creditor. I feel, therefore, the payment will be disallowed.
Deposit in bank account of creditor amounts to cash payment only. Only difference is instead of he would have deposited you deposited for him. Thus This is falling under purview of Sec 40 A (3).
But if you make account transfer of the amount from your company account to creditors account, the amount wont be disallowed
Recent Topic
- Client consent under DPDPA: Is client sharing PAN,
- TDS MISMATCH
- Rebate on other income even if LTCG is above my 12
- Need CA to certify shareholding pattern.
- Ltcg savings
- Please share the roc and income tax compliance fo
- Proprietor have 2 business. One is registered unde
- ITR-4 – Gross Receipts or Turnover for Secti
- Unrelated entries in AIS and Form 26as
- Payment to foreign national
Related Topics
CAclubindia
