Sec 40A(3)

Page no : 3

Rakesh Bura (CA ) (31 Points)
Replied 28 July 2011

thnx..................

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devang (CA FINAL article ) (181 Points)
Replied 28 July 2011

any expenditure exceeds 20000 during day in agreegated as whole then whole expenditure will be disallowed....if it in case of transporting then amount is now 35000>>>>>....

so that ur expenditure in total is disallow.

urvi jitendra bhavsar (CA Final Student) (116 Points)
Replied 28 July 2011

agreed with rachit jain..................

murtuza (student) (35 Points)
Replied 28 July 2011

Section 40A(3) is not attracted. For the APPLICABILITY of Sec 40A(3), the EXPENDITURE as well as THE PAYMENT should exceed Rs. 20,000/-.

kamalkantsharma (CA) (25 Points)
Replied 10 May 2012

I am a business man I purchase goods from Banglore For a Fright of Rs.150000. Transpoter refuse A/C payee Cheque for Same. Can I Pay Cash Rs 150000?????

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anurag gupta (ca) (71 Points)
Replied 11 May 2012

NO, U CANT PAY IN CASH....

Tanay (CA Final Student) (274 Points)
Replied 14 May 2012

Originally posted by : kamalkantsharma
	I am a business man I purchase goods from Banglore For a Fright of Rs.150000. Transpoter refuse A/C payee Cheque for Same. Can I Pay Cash Rs 150000?????

Yes you Can pay upto Rs.35000 as per Sec.40A(3)...to a transporter

Gurpal Singh (Article assistant) (26 Points)
Replied 25 July 2012

Ques: In a partnership firm, firm recd. cash Rs. 1,00,000/- from one partner and then repaid the amount in Cash Rs.1,00,000/-. Is it Disallowed u/s 40 a(3) ?

Shivam Murarka (Student) (21 Points)
Replied 18 September 2012

Well if u see there can be two things in ur case :

1) if the nature of expense is same than this will not be allowed as this is the case of spliting the amount(of more than 20000)

2) if the nature of expense is different than each expenditure is not more than rs 20000 and s the expenditure is not exceeding 20000 the section 40a(3) will not be applicable though the payment is being made to the same person.