Guys,
A SHOWROOM PURCHASES CERTAIN ITEMS FOR TRADE FROM A TRADER FOE AN AMOUNT OF 45000. RS.30,000 IS PAID IN CSH IN A SINGLE DAY. THIS IS SHOWN AS STOCK IN THE BALANCE SHEET. NOW DOES SEC40A3 APPLY FOR THIS?
CAN A CASE LAW OR SECTION REFERENCE BE GIVEN BY ANY OF YOU FOR THE APPLICABILITY OR NON-APPLICABILITY SO THAT I CAN QUOTE IT IN SUPPORT OF THIS STATEMENT.
There is not need for any case law. It is a purchase and the payment is in excess of Rs. 20000 in a single day. So, section 40A3 is straight away applicable to this.
Dear Mr. Amol and Herald sir,
The product is a bronze statue, bought for sale. The showroom officials say that since it is a capital expenditure 40A3 is not applicable........
Only from purchase from certain specified persons are exempted under 6dd. This particular supplier does not come under that specified persons list.
CAclubindia
