Jitesh Chandak (Service) (371 Points)
01 February 2011If X transporter gives 25 trucks in a single day to a company and company pays a cash advance of Rs. 5000/ - to each truck hence aggregating of Rs. 1,25,000/- Cash in a Day to X transporter. Whether Rule 6DD and Section 40 A (3) in applicable of not?
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 01 February 2011
section 40A(3) is attracted i.e. entire payment will be disallowed as the condition is payment to a person (not payment to per truck ) exceeding 35000 in a day .......
Jitesh Chandak
(Service)
(371 Points)
Replied 01 February 2011
But payment is made to different truck drivers on behalf of same transporter.
Vinit
(CA Final )
(188 Points)
Replied 01 February 2011
Jitesh Chandak
(Service)
(371 Points)
Replied 01 February 2011
but amount paid to different trucks not for a single truck. If i have paid thru 10 branches then what will happen
Vinit
(CA Final )
(188 Points)
Replied 01 February 2011
Jitesh Chandak
(Service)
(371 Points)
Replied 01 February 2011
Final Bill of transporting is raised by the transporter hence advance is debited in his name. There is no question of TDS beacuse W.e.f 1-10-2009 same has been removed.
ashoka r d
(senior audit assistant)
(82 Points)
Replied 02 February 2011
even the payments are received by the drivers that ultimately the owner receives the amount and it exceeds rs.35000 in a day then it will be disallowed
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