cash payments u/s 40(A)(3)
This query is : Resolved
11 February 2008
Whether any advance payment exceeding Rs.20,000 against an expenditure attracts 40(A)(3) disallowance?
11 February 2008
Yes. If you mean whether the payment can be split into advance and balance, it does.
11 February 2008
if payments are made in excess of rs.20000
or more at one time is disallowed if amount is spil up amount is less than 20000.no disallowed
or more at one time is disallowed if amount is spil up amount is less than 20000.no disallowed
11 February 2008
If an advance for expense of Rs.22,000 is given in cash and subsequently Expense account is debited with Rs.23000 and advance (Rs.22000) and cash account (Rs.1000) is credited,whether 40(A)(3)attracts for the advance payment
11 February 2008
In my opinion if an expenditure item in a single incident is more than Rs 20000, it can not be split into smaller cash pyments to avoid payment by account payee cheques, as is clear from the following provision of the section.
Where the assessee incurs any expenditure in respect of which payment is made,in a sum exceeding twenty thousand rupees otherwise than by an account payee cheque drawn on a bank or account payee bank draft twenty per cent of such expenditure shall not be allowed as a deduction:
Where the assessee incurs any expenditure in respect of which payment is made,in a sum exceeding twenty thousand rupees otherwise than by an account payee cheque drawn on a bank or account payee bank draft twenty per cent of such expenditure shall not be allowed as a deduction:
14 February 2008
YES Advance payment againg any Exp. is a part of Exp. so it will be disallowed u/s 40(A)(3)
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- GST rate for millets.
- RCM INVOICING FROM NOV-2024
- 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
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
CAclubindia
