Query regarding sec 40 a 3

TDS 862 views 3 replies

With regard to the limit of Rs 35000 payment in cash i have a small queary :-

Whether the aforesaid limit applies to the company assessee eg. if a company makes a payment in relation to transportation contract where by a transporter is "hired" for providing goods transportation services

 

                                                                                             OR
 

The said limit applies to a goods transporter assessee and not to the company ????

Replies (3)

Rs.35000 Payment limit  for Transporter either Transporter is company or individual

Freinds, when payment made to transporters either by the company or else assessee, then deduction of expenses shall be allowed to the assessee who is making the payment and section 40A(3) will not be attracted only and only if payment being not more than Rs. 35000. Hence, sec 40A(3) applies only to the assessee co. And not to the transporter..

allowed upto Rs.35,000/- in cash to transporters u/s 40A(3)


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