40 A (3)
This query is : Open
03 July 2016
if a transporter incurred expenditure of rs. 34000 in cash on account of purchase of tyre.as limit is provided upto 35000 for plying, hiring nd leasing is it allowable.
each expense limited to 35000 for transporter.
05 July 2016
Still, there is no answer
05 July 2016
hi Amit... You have wrongly interpretated the section 40A (3)... Section 40 A (3) provides that any expenditure incurred by an assessee above Rs. 20000/- in a day, other than by account payee cheque or draft shall not be allowed as a deduction. However, if the payments are made for plying, hiring or leasing carriages for goods such as lorries, trucks etc then the limit is extended to Rs 35000/-. the law is payment made to not the payment made by person involve in the business of plying and hiring...thus in ur case the cash payment made to buy tyre, the limit is to Rs 20000.. thus expenditure will be disallowed however if its a capital expenditure as its their business then nothing shall be disallowed
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
