14 January 2015
Sir, our company work is construction. we are constructing new commercial building (new project) therefore we are purchasing cash sand, iron & gitti. my query, we are paying cash amt more than 20000/- to sand & gitti vendor. we can book this amt in our book.
14 January 2015
if this are expenditure which is debited to profit and loss account then will not be allowed sicne its excedding the limit of Rs.20,000 cash as per sec 40A(3)
14 January 2015
You can very well book this amount in the books of account. The disallowance, if any, shall be done as per the new provisions of Income Tax Act.
14 January 2015
Sir, we are constructing building. these expensese are capital nature & common expnesese. please clear me, we have to book this amt or not
14 January 2015
if they are capitalised then these do not take form of expenditure and shall be added to cost of constructing asset and then no disallowance is applicable.