can any one say me if a company making payment above Rs20000 for business promotion is an disallowable expense?
karthikeyan.v
(Chartered Accountant)
(523 Points)
Replied 21 May 2010
Dear Divya
if the payment is made by cash ,yes Sec 40A (3) will get attracted and the amount paid otherwise than by Account Payee cheque will be disallowed, otherwise if made by cheque it will be allowed
regards
karthi
Divya.M
(CA Final Student)
(274 Points)
Replied 21 May 2010
Thanks Mr. Karthikeyan. an the payment is cash payment only
karthikeyan.v
(Chartered Accountant)
(523 Points)
Replied 21 May 2010
Dear Divya
all the expenditure gets covered, any item which will appear in the P and L Account will get attracted, there are certain exemptions also available under Rule 6DD, go thru the same
regads
karthi
Raja
(Sr. Executive)
(26 Points)
Replied 21 May 2010
if the payment is made thru acc. payee chq then it is allowed otherwise disallowed..as per sec40a
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 21 May 2010
| Originally posted by : karthikeyan.v | ||
 |
agree with it |
 |
sandeep
(CA IN POWERCOM)
(61 Points)
Replied 22 May 2010
if you will make a payment against the single invoice
surely the same will be diallowed
but if there is payment against more invoices of <20000,
the same is not disallowed even if payment >Rs.20000
because the payment & expenditure BOTH must be exceeding 20000.
Manjeet Mehra
(CA in Full time Practice)
(87 Points)
Replied 22 May 2010
Payment in cash for revenue nature expenses will be disallowed u/s 40A(3) of the act.but rule6DD also attaracts with the same.
Regards
Manjeet Mehra
CA-Final
Nayan
(student)
(25 Points)
Replied 22 May 2010
payment made through a/c payee cheque and through draft is allowd
Nayan
(student)
(25 Points)
Replied 22 May 2010
payment made above rs 20000 through a/c payee cheque nd demand draft or by credit card or debit card is allowable expense
Niraj
(CHARTERED ACCOUNTANTS)
(72 Points)
Replied 22 May 2010
Dear Divya
If payment made in cash than it will disallowed.
If not made in cash than going on the base of nature of transaction.
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)
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