2 bill payt in one go

This query is : Resolved

BHUPENDER (Querist)
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13 January 2012 PLEASE ANSWER ASAP
PAYMENT MADE TO A TRANSPORTERS FOR THREE DIFFERENT GR'S EXCEEDS 35000/- IN AGGREGATE WHETHER SECTION 40 A (3) WILL BE ATTRACTED OR NOT

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 January 2012 Yes Section 40A(3) will be attracted.

Aggregate Payment has to be seen: After the amendment w.e.f 2009-10 if a person makes more than one different purchases for cash from same person in excess of Rs 20000 in a single day even though on separate cash memos, such aggregate payment will be disallowed u/s 40A(3). For example if A makes three purchases of Rs 8000 each from the same person during different time of the day and obtains three different cash memos, yet the transaction will be covered by section 40A(3) and such expenditure will be disallowed.