Whether its an admissible business expenditure?

Tax queries 597 views 6 replies

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?

Replies (6)

Definitely yes ensure that tds provisions are complied with if required and sec 40A(3) is not violated.

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

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?

HI I GUESS THE q IS SIMPLY ABOUT CAP AND REV

 

IT IS REVENUE IF INCURRED FOR BUSINESS

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?

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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