Company is providing driver salary allowance upto rs. 15000 to its employee. If employee pay salary to its driver in cash rs. 15000 , the amount is allowable ????? Cash payment for expense is allowable u/ s 40 (a) (3) for cash in excess of rs. 10000.???????
.
17 Replies
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
10000 limit is for cash purchase.... For salary limit is of Rs. 20000 in cash
Raj Chitroda
(Accounts)
(325 Points)
Replied 28 December 2017
R u sure sir.. Cash payment wont attract 40(a)3 ?
sweetyjain
(assistant)
(227 Points)
Replied 28 December 2017
cash payment for expenses not for puchase ??
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
Plz refer rule 6DD EXCEPTION to section 40A(3).....and i mean for purchase and expenses
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
10000 limit is for single day in respect of single bill... And plz also refer section 269 SS
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
Plz refer rule one time.. Rule 6DD...exception to section 40A(3)
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
Salary ka koi bill nahi hota... Salary whole month perform ki jati h...
Raj Chitroda
(Accounts)
(325 Points)
Replied 28 December 2017
So whats the final answer allowable or disallowable ?
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
Allowable.... Why u don't go through the rule ur self... And satisfy urself
sweetyjain
(assistant)
(227 Points)
Replied 28 December 2017
Under rule 6 DD not covers this situation??? pls explain
Divakar
(Student CA Final )
(11857 Points)
Replied 28 December 2017
Under rule 6DD they cover salary... But ur situation is different... How employee can claim for that expenses as his return is filed income under salary head...
sweetyjain
(assistant)
(227 Points)
Replied 28 December 2017
driver salary allowance is provided by company to its emplyeee
sweetyjain
(assistant)
(227 Points)
Replied 28 December 2017
employee pay salary to driver in cash and reimbursement through employer. If amount of salary is 15000 i.e in excess of 10000 in cash what is treatment for such expenses .... allowable in the hands of company ????
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