is Section 40A(3) applicable if profit show u/s 44AF

40(A)3 is applicable on depreciable assets

can u tell me...

if imperest limit (which is given for daily expenditure)is given to a person which exceeds 20000,so the sec.40a(3) attract or not...

1) IF CASH IS PROVIDED TO A PERSON RS. 40000 IN ONE DAY FOR TRAVELLING  AND THE PERSON EXPENDS THE CASH WITHIN ONE DAY, DOES THE PROVISION OF SECTION 40A(3) APPLY ? CAN THE ASSESSING OFFICER OBJECT / DISALLOW THE AMOUNT TOTALLY ?  WHAT WOULD BE IMPACT IF PERSON MAKES PAYMENT IN ONE DAY FOR THE EXPENDITURE BUT SHOWS HIS BILLS/ EXPENDITURE IN DIFFERENT DAYS?

2) IF A COMPANY MAKES PAYMENT TO ITS PARTY RS. 20000 TWICE IN A DAY, WILL THE PROVISION OF SECTION 40A(30) APPLY ? IF YES, THEN WHY AND IF NO, THEN TOO PLEASE EXPLAIN THE REASON FOR THAT. 

If a branch incures sales promotion expenses, and provides facility of free shopping to a customer by issuing free shopping voucher on behalf of Head Office then following entries in the books of Head Office and in the books of branch should be passed:-

1) At the time of providing free shopping vouchers:-

In the Books of  H.O :-                                                            In the books of Branch 

  1) Sales Promotion A/c       Dr.                                            1)  Head Office A/c   Dr.

         To Branch A/c                                                                               To Sales A/c

2)  At the time of Making payment to brach,

Branch A/c                              Dr.                                                Bank / Cash A/c   Dr.

     To Cash/ Bank A/c                                                                          To Head Office A/c

Que.  Now my question is  that should head office deduct tds from the amount paid to branch against free shopping voucher due to having winning or casual income @ 30 % or should pay to cutomer or branch full amount of free shoppping voucher, please explain the reason with detail accounting.

2) My next question is that free shopping facility was provided to customer by the branch and suppose the branch did not deduct tds at the time of providing free shopping facility, then what would be impact of this on the accounting, should the branch/ head office pay amount of tds at own behalf or not, and if yes, then please would u  tell me that what is the rate of interest of tds on late deposit or penalty, if any ?

Is sec 40 A(3) applicable on electricity charges

please read Rule 6DD of Income Tax Rules for exclusions in disallowance under section 40A(3).

is limit of Rs.20000/- will apply to any advance paid to contractor?

is section 40A(3) applies for fixed assets eithere depriciable or not

No sec 40A(3) exempts expenditures that r capital in nature.

sec. 40A(3) applies only for expenditures which are revenue in nature.

no  40a(3) is applicable only revanue exp. not capital exp

i think so section 40A3 applicable for only expenditure which r debited to trading and profit and loss account and may be depriciation disallowed and fixed asset purchased more than rs.20000 by cash payment

section 40A3 not applicable Elcetircity charges as per Rule 6DD of income tax rules please read Rule 6DD of income tax rules for exemptions to section 40A3