Deepak Kumar (Chartered Accoountant) (270 Points)
25 February 2010My 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.
Amir
(Learner)
(4016 Points)
Replied 25 February 2010
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...
C.Balaji
(Learner)
(1867 Points)
Replied 25 February 2010
Dear Amir brother is rite.........once again.........
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
