john (LEARNER) (549 Points)
11 February 20121)
For a Single Invoice Rs.60000/-
Payment made in cash as follows
on 2nd jan 2012 Rs.20000/-
on 3rd jan 2012 Rs.20000/-
on 4th jan 2012 Rs.20000/-
Q-WILL THE ABOVE TRANSACTION BE ATTRACTED BY SEC 40A(3) ?
2)
For a Single Invoice Rs.60000/-
Payment RECEIVED in cash as follows
on 2nd jan 2012 Rs.30000/-
on 3rd jan 2012 Rs.30000/-
Q- SHOULD THE CASH RECEIVING COMPANY BE WORRIED ABOUT ANY PENALTY OR DISALLOWANCE ?
Suraj S
(Audit Executive)
(335 Points)
Replied 11 February 2012
No disallowance for payee company u/s 40A(3) as payments have been made on different dates.
There is no need to worry for receiving company, but u can assure urself that there has been some malpractice by the payee company.
CAclubindia
