40a(3)

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government employee

225 Points Joined March 2017

can the assessee make payment in cash excess of 20000 to Beverage corporation ltd towards license fee in liquor business

Replies (2)

Finance Professional

6216 Points Joined August 2014

I am not much aware how license fee for liquor business is treated in business.

Assuming it's an Asset, having an enduring benefit: No, 40A(3) shall not be applicable

Assuming it's a Revenue Expense, Debited in P&L: Yes, 40A(3) will be applicable.

INCOME TAX OFFICER

1736 Points Joined February 2014

from a.y. 2018-19, capital expenses are also covered under section 40A(3)

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