Pls help me Sec 40A(3)

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Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2010 As per sec 40 A (3), sum of Rs. more than 20,000 can not b paid in cash.

So my ques. is dat ?

Can we deposit more than 20,000 cash directly in Supplier's Bank A/c instead of cash paid to him.

is that allowable ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 October 2010 In the absence of such a specific exemption in the act and the corresponding rules, prima facie it can be disallowed under section 40 A(3) though there is a favourable old B'lore tribunal decision in the case of Sri Renkaswara Rice Mills reported in 93 TTJ 912.

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CA Punit

CA Punit (Expert)
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21 October 2010 Even if you deposit directly in supplier's bank a/c, it will still remain a cash payment for you.

Sec 40A(3) requires payment purely through banking modes.

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taxindiaconnect

taxindiaconnect (Expert)
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21 October 2010 Agreed with experts

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2010 Thank u sir vry much

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2010 i hv one more ?

In Reckoner and in all other books, it is written that unabsorb Dep. after carried forward (i.e. in future) can be set off from any head Income except salary Head.
But Act is Silent about same. it means unabsorb Dep. after carried forward (i.e. in future) can set off only from income from busi. head.