An expenditureof Rs 20000 incurred towards cost of neon signs fixed on office premises for advertising the products of the assesse.
Whether its an admissible business expenditure?
6 Replies
SALIL
(PRACTICE)
(63 Points)
Replied 28 June 2010
Definitely yes ensure that tds provisions are complied with if required and sec 40A(3) is not violated.
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 02 July 2010
Dear Ranjith,
Since the payment doesnt exceed 20000 40 A 3 wont be attracted anyway.
https://www.indiankanoon.org/doc/781215/
Go through this. This might help u regarding the issue
CA Shiv
(Business Controller)
(2987 Points)
Replied 02 July 2010
well this is the question for violation of 40a3 what i think so ...
amount is irrelevant... i think so it is difficult to prove it as it is incurred for business..
What is the type of business the client is doing? if client has done some expense, it is recovered from their client or not?
CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 02 July 2010
HI I GUESS THE q IS SIMPLY ABOUT CAP AND REV
IT IS REVENUE IF INCURRED FOR BUSINESS
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 02 July 2010
Even I guess so Amit. but can u go through that case law which i posted and explain wat is sec 37(3) as explained in it?
RANJITH PRABHU
(STUDENT)
(46 Points)
Replied 03 July 2010
| Originally posted by : RANJITH PRABHU | ||
 |
An expenditureof Rs 20000 incurred towards cost of neon signs fixed on office premises for advertising the products of the assesse. Whether its an admissible business expenditure? |
 |
Or it should be capitalised??
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