RAJU (LEARNER) (1089 Points)
11 July 2009Dear Members,
Whether payments made to employee being reimbursement of expenditure for business in excess of Rs.20,000 on a single day is to be disallowed U/s.40A(3) even when the employee has not made the payments in excess of the limit which incurring the expenses.
Regards,
Dharmaraju
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 11 July 2009
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 11 July 2009
NO IT WILL NOT BE DISALLOWED.BUT FOR THIS U HAVE TO ROUTE IT THROUGH IMPREST A/C SYSTEM
saurabh
(CA)
(552 Points)
Replied 12 July 2009
Agree with Mr Ritesh, imprest system is generally used for this.
pankaj
(International Tax consultant)
(66 Points)
Replied 12 July 2009
hey dharmaraju It will be allowed as deduction if expenditure is less then Rs 20000 through imperest system of accounting
praveena
(CA-Final)
(255 Points)
Replied 19 February 2010
Manish Goyal
(Patner)
(27 Points)
Replied 08 August 2011
Praveena,
Rs. 50000 given is not a expense. It is advance.
CAclubindia
