Fixed assets purchase regarding

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alpesh

alpesh (Querist)
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15 April 2018 dear sir i has cash balance for 1500000 then i can purchase machine in of rs 500000 cash or not.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 April 2018 Expenditure for acquisition of any asset in respect which payment exceeds ten
thousand rupees, such expenditure shall be ignored for the purposes of
determination of actual cost of such asset. meaning thereby depreciation will be
disallowed.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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16 April 2018 You can purchase with cash but ready to face disallowance with respect to income tax for payment in excess of rs 10,000. ALSO will have impacts on actual cost computation as per sec 43.so much of amount paid in form of cash in excess of 10,000 shall not be regarded as actual cost. Better avoid cash transaction for purchase

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