Disallowances u/s.40A(3) r.w.r 6DD - payment to agent or not - ...

Court Rules Cash Payments to Contractors Violate Section 40A(3) as Rule 6DD Exemption Not Applicable.

May 18, 2022

Case Laws Income Tax AT

Disallowances u/s.40A(3) r.w.r 6DD - payment to agent or not - payment of expenses was made in cash exceeding the stipulated amount - it is seen that the assessee made payment to contractors and such payments were as such recorded as expenditure in the books of account of the assessee. In such circumstances, it cannot be said that the contractors were agents of the assessee for the provision of labour. - the authorities below were justified in coming to the conclusion that clause (k) of Rule 6DD was not attracted. If Rule 6DD is taken out of purview, then the payment is otherwise in violation of section 40A(3) of the Act. - AT

View Source

← Previous Next →

Disallowances u/s.40A(3) r.w.r 6DD - payment to agent or not - ...

Court Rules Cash Payments to Contractors Violate Section 40A(3) as Rule 6DD Exemption Not Applicable.

May 18, 2022

Case Laws Income Tax AT

You may also like:

Addition u/s 40A(3) - cash payment in excess of prescribed limit - Genuineness or otherwise of payment is not a criteria to exclude cash payment in excess of prescribed...

Short payment of duty due to wrong availment of Excess Cenvat Credit - Payment of duty in Cash - default mentioned under Rule 8(3A) is applicable in short payment of...

Disallowance u/s 40A(3) - transactions and payments made in cash - assessee filed affidavits from sub-contractors of assessee firm and they insisted for cash payments to...

HC held that u/s 40A, cash payments are restricted to prevent false income claims. Exemptions allowed for special circumstances where bank transactions are impossible....

Scope of exemption from GST - As the exemption notification have to be strictly construed, the exemption extended to a works contractor is not applicable for his...

Availment of CENVAT Credit - Non maintenance of separate account - When it is impossible to comply with the provisions of sub-rule (2) of Rule 6, it would not be...

Settlement Commission's order rejecting exemption u/s 54 on cash portion invested in purchasing property after sale of another property was invalid. Section 54 does not...

Cash payment for purchase of fruits - the payment in cash for purchase of agricultural commodities is covered by Rule 6DD(e) of the Rules and in such a situation merely...

Valuation of goods - Applicability of Rule 8 on Job work - Rule 8 and Rule 9 are not applicable - Once Rule 8 is not applicable in the case of the respondent, it is Rule...

Adjustment of excess payment of Service Tax – centralized registration - Rule 6(4A) of STR ,1994 would be applicable and Rule 6(3) would not be applicable - AT

Benefit of exemption subject to the condition that no Cenvat Credit is availed - The appellant are eligible for exemption under Notification No. 30/2004-C.E. when they...

Exemption from GST - sub-contractors to the builder / Developer / Contractor of Affordable housing under PMAY Scheme - In the instant case it is an admitted fact that...

The High Court addressed the demand for interest u/s 50 of the Central Goods and Services Tax Act, 2017. It clarified that interest on delayed tax payment is not...

Interest Liability on Electronic Credit Ledger Payments - Seeking levy of interest only on that part of the tax which is paid in cash - The High court concluded that the...

Scope of exemption notification - Absolute exemption or conditional exemption - In the present case, the goods were supplied under notification No. 108/1995-CE depending...

Quick Updates: