40 (A) 3

This query is : Resolved

Bhaven (Querist)
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09 May 2011 One printing and statinoary bill of Rs.25000/-

If I pay Rs.5000 on 5 differents dates whether expenditure is allowed u/s 40(A)3, because section says cash payment exceeds Rs,20,000.

If we book some travel agency for 25 seats, (but bus capacity is of 40 seat & it carries other passanger also, i.e 15) whether it will come under hiring services and limit u/s 40(A)3 will Rs.35000

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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13 May 2011 1. You can pay Rs.5000 on different dates. It wont be disallowed u/s 40A(3)

2. Hiring does not mean passenger vehicles. It is related to goods carriers. So the limit of Rs. 35000 is not applicable in your case.