Forums

Back

40A(3)

Direct Taxation

Is this 36,000 of customs duty in pont-6 allowed as deduction?

Veeresh Kumar Poliki

CA Inter

★ 8K+

27-Oct-21 19:13

660

Answers (7)

Yes, being payment of tax to government is allowed

Himanshu Somani

CA Final

★ 97K+

27-Oct-21 22:27

Himanshu Somani

Yes, being payment of tax to government is allowed

1.Where the payment is made to the Govt and, 2.under the rules framed by it, such payment is required to be made in legal tender. It is not satisfying 2nd condition here, isn't it?

Thread Starter

Veeresh Kumar Poliki

CA Inter

★ 8K+

27-Oct-21 22:34

Thread Starter

Veeresh Kumar Poliki

1.Where the payment is made to the Govt and, 2.under the rules framed by it, such payment is required to be made in legal tender. It is not satisfying 2nd condition here, isn't it?

How?

Himanshu Somani

CA Final

★ 97K+

27-Oct-21 22:47

Himanshu Somani

How?

There is no prescribed rule that customs duty to be paid in cash only right?

Thread Starter

Veeresh Kumar Poliki

CA Inter

★ 8K+

27-Oct-21 22:54

Thread Starter

Veeresh Kumar Poliki

There is no prescribed rule that customs duty to be paid in cash only right?

Sorry not sure about this

Himanshu Somani

CA Final

★ 97K+

27-Oct-21 23:02

Himanshu Somani

Sorry not sure about this

Thread Starter

Veeresh Kumar Poliki

CA Inter

★ 8K+

27-Oct-21 23:03

Any payments made to Government (whether State or Central Government). Such payments are direct taxes, indirect taxes, duties, cess etc. are allowed as deduction. Legal tender means coins, bank notes that are accepted.

Yoga Vishnu

CA Final

★ 11K+

28-Oct-21 08:16

Your Reply

Helping students crack CA, CFA & ACCA since 2017. 14,000+ students have trusted us for the best CA,CFA, ACCA online classes. Learn from the best CA, CFA faculty, access top-quality content and clear your exams with confidence

40A(3)

Your Reply

Company

Information

Offerings