In simple words
Yes Depreciation is allowed
Because Depreciation is Non-cash Expenditure.
Depre allowability Sec 40(A)3
Page no : 4
Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 17 March 2013
Sec.40(A)3 is not applicable for purchase of capital asset not meant for sale
Reference:Circular no.34 dated 05/03/1970
Please find attached to download
Attached File : 831581 1151834 circular no 34 dated 05031970.pdf downloaded: 191 times
Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 17 March 2013
Applicability of Sec.40(A)3
So as per circular,
Disallowance under sec 40(A)3 for the payment made in the cash exceedin Rs.20,000 (35000 for payment of goods and carriage ) attracted only incase of revenue expenditure .
If the same is made for procuring Fixed assets like Building,plant and machinery and laptop whatever Then section 40(A)3 not applicable
Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 17 March 2013
OTHER DOUBTS ON SEC 40(A)3 AND SOLUTIONS TO THEM
ELECTRICITY BILL PAID IN CASH -SEC.40(A)3
PAYMENT TO A PARTY MORE THAN 20000 THROUGH NET BANKING
Recent Topics
- Response to defective return notice in case of 139
- Capital loss for surcharge purchase?
- RCM on certain expenses under Sec.9(3) and 9(4)
- CPA to Company Registration Services for USA
- RCM RELATED TOPIC
- 194C TDS ON CONTRACTOR
- Capital gains on sale of TDR
- Cash ledger refund
- Interest free loans from directors in private limi
- Section 194T
Related Threads
CAclubindia
