40 A(3)

This query is : Resolved

bhavishya (Querist)
Follow

04 September 2009 whether Cash Payment more than 20,000 in Single day otherthan account payee cheque is allowed against two different bills from A.Y 2010-11

chetan soni

chetan soni (Expert)
Follow

04 September 2009 yes, rule 6DD specify for single payment in a day to a single party is disallowed u/s 40 A(3).

In your case the disallowances will be 20% of the such amount paid.

bhavishya

bhavishya (Querist)
Follow

04 September 2009 I think from the A.Y 2008-2009, disallownce will be 100% of amount paid.

and rule 6DD specify that payment against such expenditure. two different bills are covered under this rule?

Upgrade to CAclubindia Pro. Subscribe Now!