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
I go with Mr. Sagar, his opinion on the point is accurate.
Recent Topics :
- GIFT REGARDING
- TDS on salary to non resident managing director
- Ewaybill and Transport documents (Lorry receipt)
- LTCG on sale of Builder Buyer Agreement
- Rule 13(2)(h) and valuation of CCDs
- Leave encashment, New labour code, Management cadr
- GST clarification needed:
- TDS processed with short deduction default
- TDS on rent paid to RNOR Landlord. Can RNOR US tax
- PAN CANCELLATION OF A DISSOLVED PARTNERSHIP FIRM
Related Topics :
CAclubindia
