Can payment be made of above Rs. 20000 for purchase of car or other fixed assets or its a violation of sec. 40A(3)
Thanks in advance............
CA AMIT VIJAY (Manager-Audit) (123 Points)
01 September 2013Can payment be made of above Rs. 20000 for purchase of car or other fixed assets or its a violation of sec. 40A(3)
Thanks in advance............
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 01 September 2013
Dear Amit,
No, there is no violation of Sec. 40A(3) in that case.. it applies only to expenditure which are debited to P&L A/c (i.e. revenue expenses not capital expenses).
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
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