08 July 2010
Can any 1 kindly elaborate when expenses exceeding rs.20,000/- will be disallowed. Suppose, A firm purchased goods worth Rs.86000 on credit on May 1,2010. Payment made as follows:
a) Rs.15,000 in cash on 10th may b) Rs.30,000 by a/c payee cheque on 20th May c) Rs.41,000 by A/c payee.
08 July 2010
NO DIS ALLOWANCE IN GIVEN CASE. U/S 40(A)(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure. Further in the case of Transporter the amount is Rs. 35000 instead of Rs. 20000.
CAclubindia
