Jitender
(Chartered Accountant)
(8724 Points)
Replied 05 September 2009
advance also attracts sec 40A(3)
ARUN KUMAR V
(CA)
(209 Points)
Replied 05 September 2009
As per sec 40A(3) expenditure incurred for which payment is made otherwise than account payee cheque/bank draft will attract disallowance.
so in the present case advance is only paid. But expenditure not yet incurred. But when the actual expenditure is recognised 40A(3) will attract.
So at the time of making advance 40A not attract, but when expenditure recognised 40A attracts. so sometimes year of attraction of disallowance may be postponed.
CA Harish Suwalka
(Chartered Accountant ( Bhilwara ))
(4125 Points)
Replied 09 September 2009
clearly described by arun
thanx
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
