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Is it Attract 40A(3)

RAKESH (Almost CA) (2199 Points)

30 June 2011

Hello everyone . Please let me know whether the following attract 40A(3) provisions

A real estate company pays Cash for stamp duty for property registration . is it revenue expenditure or capital expenditure.

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12 Replies

Gourav Kapoor (CA Final Student) (2977 Points)
Replied 30 June 2011

its revenue expenditure .....i had posted ur question on my page wall....u can refer that too here https://www.facebook.com/CAPassion

Regards

Gourav

if u are a CA passionate, this is for you...CA PASSION

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RAKESH (Almost CA) (2199 Points)
Replied 30 June 2011

mate saw ur facebook posting . so many replies. 10q for prompt reply.

A G Vishal Kirthic (Chartered Accoutant) (236 Points)
Replied 30 June 2011

Hi Rakesh,

Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt

3 Like

CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 30 June 2011

I do agree with Vishal, the stam duty payment in cash does not attract section 40(A)(3). With regard to its nature, it will be added to the cost of the property, and treated in the same way as property is treated.

Vikas (CA) (1135 Points)
Replied 30 June 2011

Originally posted by : Vishal Kirthic
	Hi Rakesh, Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt

agree...

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CA. Roopali Kadam (Jobs on assignment basis.) (1459 Points)
Replied 30 June 2011

Originally posted by : CA. Rashi Goyal
	I do agree with Vishal, the stam duty payment in cash does not attract section 40(A)(3). With regard to its nature, it will be added to the cost of the property, and treated in the same way as property is treated.

Agreed

CA Mukesh Jain S (Chartered Accountant in Practice) (692 Points)
Replied 30 June 2011

It is covered in rule 6DD exemptions. So 40(A) (3) is not applicable

CA Mohit Saxena (FINANCE MANAGER) (343 Points)
Replied 30 June 2011

Originally posted by : CA Mukesh Jain S
	It is covered in rule 6DD exemptions. So 40(A) (3) is not applicable

completely agreed

(Guest)

Originally posted by : Vishal Kirthic
	Hi Rakesh, Payment of Stamp duty does not attract 40A3 provision as it comes under the purview of Rule 6DD exemptions i.e payment made to the Govt

agreed