adjtmnt of cash loans
This query is : Open
09 March 2009
i have given cash loans to my supplier totalling rs.300,000 .in instalments of 30,000 ; 100,000 ;100,000; 70,000.
later on from same supplier i purchased one machinery item costing 3.5 lakhs .
can i adjust cash loans against purchase from same party ?
later on from same supplier i purchased one machinery item costing 3.5 lakhs .
can i adjust cash loans against purchase from same party ?
09 March 2009
it can be adjusted and than machinery need to be capitalized. depreciation U/S 32 can b claimed.
10 March 2009
machinery purchased is not my capital asset. it is my trading item .
11 March 2009
US 40A(3) u wont be allowed deduction for cash loan for trading purchase.
so better if u dont set off.
better if u make payment for machinery by account payee cheque or draft.
so better if u dont set off.
better if u make payment for machinery by account payee cheque or draft.
13 March 2009
sec40A(3) and rule 6DD are applicable only for deductions under sec 30 to 37.
giving loan in cash is not covered under the above sections .
rule 6DD allows adjustment entries .
giving loan in cash is not covered under the above sections .
rule 6DD allows adjustment entries .
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