Reimbursement of expenditures (Paid by the director in cash) to the director in cash and by a/c payee cheques. What will be the impact of such transactions In respect of section 40 A (3) & sec. 269SS & 269T.
swohra (none) (537 Points)
04 January 2012Reimbursement of expenditures (Paid by the director in cash) to the director in cash and by a/c payee cheques. What will be the impact of such transactions In respect of section 40 A (3) & sec. 269SS & 269T.
neeraj
(CA)
(930 Points)
Replied 04 January 2012
I think no implication in any of the specified sec. However each cash exp made by director must be less than 20,000. & since it is not loan hence i think no implication of 269SS & T
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 04 January 2012
if the cash payment made by the company to the director doesn't exceed Rs. 20,000/- in a day then it will not be disallowed u/s 40A(3) eventhough director has made payment in cash for more than Rs. 20,000/- as the person claiming the expense will be company and not the director. As this is not a loan, provision of Sec 269SS & T is not applicable.
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