Payments disallowed u/s 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2013 our co deals in automobile spare parts and sell goods all over India. we appoint one dealer in xxx state to whom we sale spares billed Rs 326540 . now he is depositing cash in our account Rs 121000, Rs 49000, Rs 99000, Rs 57540 as balance on different dates from different locations like city 1, city 2. i want to clear that can he made cash payment above 20000 and if yes/no whether i shall be responsible to reply to deptt for any reciept above 20000.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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27 January 2013 it is his problem. 40A(3) says disallowance of expense. it is your income so no problem with that.
if he is showing this as purchase then he can get problem. but again to see whether you raised any bill more than 20K.
there is many points to see but for your dealer end.
you are safe

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2013 Thanks Prashant Gupta ji for resolving my query.

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