Exceptions to section 40a(3) rule 6dd

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 If cash outflow is made exceeding Rs. 20000/- to single person as an advance if he/she is handling some site , so amount is paid to such person to carry out all site exps whether that should be disallowed under section 40A(3) or not?

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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19 November 2013 In case the advance is paid in the name of an employee of the Company and recorded as Cash at site in the books, no disallowance u/s sec 40A(3) is warranted, provided that no single payment exceeding Rs. 20,000 to a person in a day is made.