CA KAMAL DULANI (MANAGER AUDIT) (86 Points)
24 April 2012
I have a query that as we know the budget 2008 increased the cash payment to transporter limit from Rs. 20000/- to 35000/-
but i am not clear that the said limit is against one transporter or one GR
kindly let me know-- if payment is made in cash Rs. 75000/- per day freight against 5 seperater GR to same person.
is Section 40A(3) Attracts
If there is any case law kindly give
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 24 April 2012
Sec 40A(3) states that any expenditure made to a person otherwise than by way of account payee cjeque or bank draft exceeding 20,000/- and 35,000/- in case of transporters shall not be allowed as deduction.
So, when you haev paid 75,000/- to a single person in cash, it would attract Sec 40A(3), irrespective of the fact that it has been paid for separate GR.
Regards
Prateek
CA Arindam Sain
(Practice)
(308 Points)
Replied 24 April 2012
AGGREGATE of payments made to A person in A DAY , exceeds Rs.35000/- for above case,,,,so it is evident from the language of provision that..in your case is come under the disalowance u/s40A(3)
CAclubindia
