Purchase goods from urd dealer which is our fixed assets

This query is : Resolved

Tushar (Querist)
Follow

19 December 2009 Dear Sir,

I Want Information for following transaction:

when we purchase from urd dealer which is our fixed asset for our company the total bill amount Rs.55,000/- then after what will be action about for taxation purpose

CA Balram Sharma

CA Balram Sharma (Expert)
Follow

19 December 2009 Section 40A(3) will not attract in case of fixed assests.

Heera Nahariya

Heera Nahariya (Expert)
Follow

19 December 2009 recently there is a case law pertaining to this subject. While claiming depreciation there would be a problem in case of fixed assets purchased in cash.the same may be disallowed. so to avoid letigation we should follow section 40A(3)( read with rule 6DD) and try to avoid cash transaction as far as possible.

Upgrade to CAclubindia Pro. Subscribe Now!