02 December 2010
hi, My question is whether sec 40A 3 is applicable for cash deposited in bank account. eg Mr X(Punjab) sell goods to Mr y(Delhi) amounted to RS 50000.Now Mr Y deposited cash rs 50000 to the bank account of MR X. My question is whether this is within the scope of Sec 40A 3. what is the correct accounting treatment in this case. please refer any case law.
03 December 2010
Only crossed cheque or draft is a stipulated medium for payment exceeds Rs 20,000/- If you deposited cash in parties will also be construed to be cash payment made.
CAclubindia
