Payment more than 20000

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2013 Bill was presented to us by our furniture supplier of Rs 30000 we paid him advance of Rs 15000 in cash on 30.11.2013 and rest of the amount of Rs 15000 in cash on 16.12.2013 will the entire amount of Rs 30000 will get disallowed under sec 40A(3)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 December 2013 No. Furniture is not an expenditure of revenue in nature.
.
Even if you are a dealer in furniture, cash payments are in 2 different dates and each payment is below Rs. 20000, so Section 40A(3) is not applicable here.
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Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2013 Thank you sir'
Sir I want to know that paint & electric work done on a new office will be revenue expenditure or capital expendeture

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