applicability of cash payment limitation of 20000, in following cases
1.entry tax paid at barrier 56000 cash
2. registration charges of vehicle to transport dept. 78000
3.shop registration charges along with stamp paper charges425000
15 Replies
Ramya Kinthali
(Financial Consultant)
(108 Points)
Replied 09 March 2011
2 & 3 ar capital in nature.... limitation of cash payment in exces of 20000 does not apply for them , firsl of all concept of disallowance desnt appear for such items.... so no issue....
in case of 1st.. entry tax it depends on nature...
if it is paid for bringing some asset ino business premises .. this limitation doesnot apply
if it is in normal course of transfering stocks or anything .. it is disallowed...
Pankaj Arora
(Learner)
(3134 Points)
Replied 09 March 2011
1. tax will not disallow..
2.It will disallowed if vehicle is not for personal use.
3. If shop is company’s balance sheet than it will disallow otherwise not.
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 09 March 2011
No Applicability in all three cases coz :-
1. Any type taxes paid to Govt. no limit in cash.
2 & 3 Expenditures are Capital Nature so there is no provision attract of Rs.20000/-
Abhishek Jain
(RisK Manger)
(231 Points)
Replied 09 March 2011
provisions of sec 40 (A) (3) are not applicable to any of these transactions
CA Ankit Gulgulia (Jain)
(B.COM (H) FCA CIFRS CBV R-ID (IICA) R. Valuer (IBBI))
(5842 Points)
Replied 09 March 2011
1) This shall escape 40A(3) vide Rule 6DD
2) & 3) Capital Natured Expenses - 40A(3) envisages disallowance of Deductibility w.r.t Business Expenditure so No Question of any Disallowance of CAPEX.
Regds
Ankit
CA Ravi Roy
(Self Employed)
(128 Points)
Replied 09 March 2011
40 (A) (3) will not applicable in above case
Naveen
(CA Final, B Com (A&F))
(122 Points)
Replied 10 March 2011
No Applicability in all three cases coz :-
1. Any type taxes paid to Govt. no limit in cash.
2 & 3 Expenditures are Capital Nature so there is no provision attract of Rs.20000/-
SAKET PANDEY
(CA FINAL STUDENT)
(256 Points)
Replied 10 March 2011
Pls refer the below link, it will give the list of payment which are not under perview of 40 (A) (3).
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/rules006dd.htm
manik
(ca in practice)
(420 Points)
Replied 10 March 2011
but it is given in law that if cash expenses paid for purchasing of a depriciable asset , the act will not allow its depriciation proportionate to its cash expenditure??????reply
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