My company has paid Rs. 50000/- in cash to the tranporter in a day on behalf of our Customer, Because ultimate liabilites of pay freight is of customer. Now my queri is that " will 40 A (3) be applicable on our co even we are not paid cash agnst our expenditure.
Menu
Disallowance U/S 40 A (3)
Replies (2)
Dear Deepak,
It depends upon the procedure u followed in accounting in ur books -
Case1
If u treat the payment as expenditure & the receipt on this account from the customer as Income in the Profit & Loss A/c then - YES, 40A(3) will apply
Case 2
If u book ur Income with the net amount only & treat the payment as advance to/on behalf of customer...then NO 40A(3) will not apply...
Dear Amir brother is rite.........once again.........
Recent Topic
- Clarification Needed: Reporting Accrued vs Paid FD
- TDS on prize given to participants in Livestock sh
- TDS related matter - 194 IA
- Research: How do CA firms handle GSTR-2B reconcili
- CA FINAL FR IndAS 33 Illustrtion 14
- Taxation on Sale of old Jewellery Received at Marr
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
Related Topics
CAclubindia
