22 September 2011
Since the aggregate payment per day exceeded the threshold limit, expenses will be disallowed under section 40A(3) of the IT Act,1961 ,if purchases are for business purposes.
23 September 2011
Threshold Limit U/s 40A(3) is Rs.20000/- for one person on one day. If the payment is exceeding Rs.20000/-, you need to pay it through your bank.
It does not matter whether you paid entry tax or not.
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