30 November 2013
Cash payment of an expenditure exceeding 20000 is disallowed . But what if we purchase fixed assets in cash ? in that case whether depreciation will be allowed or not ?
30 November 2013
Depreciation is not an expence it is allowance .. no problem to depreciation it is allowed. . . any cash expence more than 20K debit to p&l is disallowed as purchase of fixed asset will not hit p&l so it will be fine . . but it is not proper internal control measure to purchase assets in cash..make cheque payments mandatory if it is more than 20K..
CAclubindia
