Ajay Balasubramanian (ACA) (114 Points)
15 June 2017Hi,
can someone clarify this please
1. Cash advance paid rs 19000 on 01-04-2017
2. Expense settled on 05-04-2017 for Rs 26000 where expenses is accounted for Rs 7000
Is section 40 a 3 attracted on 05-04-2017??
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 15 June 2017
Depends upon receipt of Rs. 7000/-. If by cash, yes.
Ajay Balasubramanian
(ACA)
(114 Points)
Replied 15 June 2017
Upon the final bill of Rs 26000. the remining amount Rs 7000 was also paid in cash.
Sir can you pl tell why u have mentioned "Receipt of cash" .
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 15 June 2017
Yes, when paid by cash means total amount settled by cash, though in different years, but it attracts section 40A(3). It was by chance mistake, but meant for payment.
Ajay Balasubramanian
(ACA)
(114 Points)
Replied 15 June 2017
ok 
.
Thank you very much sir for your valuable input..
CAclubindia
