Easy Office
LCI Learning

cash payment

This query is : Resolved 

21 July 2008 Sir,

Ours company is Ltd but not listed. During the financial year(2007-08) we purchase Interior Rs.10 Lakhs in cash. As per sec 40(a) no payment is made in cash more than Rs. 20k. In this way our asset purchase is allowable(capital asset) or not. If allowable can we claim depreciation. Please give advice in this thing.

21 July 2008 Fixed asset may be acquired in cash and depreciation claimed accordingly. Section 40A(3) relates to expenses debited to P & L a/c.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries