Hi,
Just wanted to check whether purchases made in excess of Rs 20,000/- in Metro Cash and Carry will attract section 40A(3).
It is well known that purcases in Metro is only in cash
Thanks
vishnupriya
(CA Final)
(1418 Points)
Replied 28 July 2011
Yes that amount will be disallowed U/s 40A(3)
because Metro Cash & carry is not mentioned in Rule 6DD.........
vishnupriya
(CA Final)
(1418 Points)
Replied 28 July 2011
From Rule 6DD
"where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person"
the above point is also not applicable becuase there will be no agency relationship between Metro and its buyers
hence the amount is disallowed.............
Snehal
(Learning Tax)
(129 Points)
Replied 28 July 2011
The Expense will be disallowed as in excess of Rs. 20,000/-
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