A firm has business of selling 2 wheelers vehicles. It pays RTO tax in cash in excess of Rs.20000/- per day. Further, Partners withdraw cash in excess of Rs.20000/- per day. Whether 40A limit of Rs.20000/- is applicable for RTO tax and partner cash withdraw or not ?
2 Replies
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 27 February 2022
RTO may come under exemption related to govt.
But limit is applicable to partner's
But limit is applicable to partner's
sabyasachi mukherjee
(27574 Points)
Replied 27 February 2022
Section is 40(A) 3 .
It's a disallowed expenditure.
It's a disallowed expenditure.
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