17 December 2010
Hello Everyone. One of our client (Pvt. Co.) makes payment for more than Rs.20000/- in a hotel by cash. This is a regular expenditure as they have to stay the foreign suppliers in hotels. Now they want how do deal in this regard u/s 40A(3). They also made payment for air tickets that too is more than Rs.20000/-. So,can anyone suggest me how to tackle this matter??
17 December 2010
If payment is not realeased directly by the company ( means through employee or directors ) to hotel or travel agency, sec 40A(3) will not be applicable.
CAclubindia
