AS PER NEW AMENDMENTS IN 40A(3), ANY PAYMENT IN EXCESS OF RS.20000/- PER DAY FOR A PERSON IS DISALLOWED. MY QUERY IS LIKE THIS: IF THE BILL IS EXCEEDING RS.20000/- & ACCOUNTED ON CREDIT BASIS & IF IT IS PAID IN THE SAME YEAR IN CASH LESS THAN 20000 EACH PAYMENT WILL IT ATTRACT DISALLOWANCE? BCOZ IN THE NOTIFICATION IT SAY ANY EXP ALLOWED ON ACCRUAL BASIS & ITS PAID IN NEXT YEAR OTHERWISE THAN ACCOUNT PAYEE CHEQUE OR DRAFT THEN IT WILL BE DISALLOWED. PLS CLARIFY..
CAclubindia
