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.
2 Replies
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.
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
