Very very urgent

Tax queries 1431 views 15 replies

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

Replies (15)

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...

 

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.

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/-

provisions of sec 40 (A) (3) are not applicable to any of these transactions

i agree with luniya

Not applicable to all 3 cases...

not applicabale in all the three cases,... 1 is paid to govt.,

2&3 are in capital expense nature...

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

NO LIMIT OF CASH IN THESE THREE CASES

40 (A) (3) will not applicable in above case

Not Applicable in all 3 Case

 

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/-

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

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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