ca tarun sharma (SERVICE) (277 Points)
19 August 2009 if any payment made to electricity co i.e BYPL in cash more than rs 20000 will it be disallowed us 40A(3)
and also if employer cont to esi, epf paid in cash above rs 20000 will it be disallowed or not
please refer provision in detail regarding reply
thanx in advance
Chaitanya G Kukalyekar
(PCC Article Waiting for results)
(117 Points)
Replied 19 August 2009
Electricity expenses paid in cash wil be disallowed....
Regarding Employers Contribution ESIC and other such payments, it can considered as govt payment which is exception under 40A(3). It can debatable issue.. But according to me, it wont be disallowed...
CA Abhiram Bharat.
(Assistant Manager Taxation)
(508 Points)
Replied 19 August 2009
agree wd chaitanya.
CAclubindia
