last month in our project a fatal accident was happened and a worker was seriously injured. At that time we gave our HR person Rs 2 lac cash as advance to make expenses for hospitalisation etc. Now he has submitted all the expenses i.e. more than 2 lac. How can I show that expenses in cash or is it disallowed to show at a time or to show bifurcating the expenses. Pls suggest.
18 September 2011
My dear friend the dis-allowance will be depended on the some facts. My suggestion is please approach your auditor with the facts. However the dis-allowance would be attracted as per section 40A(3) but exempted as per Rule 6DD. Please consult your auditor. OM SAI SRI SAI JAI JAI SAI
CAclubindia
