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Good Work..

Pawan Sir,
                   Pls give me the citations,

I dont think 43B(b) is applicable to employee's contribution,

43B(b) is as follows

      "(b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees".

i think upon reading of this section as an employer will include only Employer's contribution and will not include employee's contribution recieved by the employer which is covered U/s 36(1)(va)..

Is this interpretation right or wrong sir

['as an employer']

Will the word 'as an employer' used in explaination include cases where amts have been recieved by employer from employee's of contactee's because as per PF act etc.. Employer/e is liable w.r.t PF for contactors employee's also..

Or will expression 'from any of his employee's' used in 36 (1) (va) include such employee's of contractors ??? ???

Sir thanks for replying,

The Co. is accounting each entry seperatley, i'll further elaborate my doubt by Example.

Eg: Co. gives advance to E'ee Rs.50000 by mode specifed in 40A(3), can that be considered capital payment by Co.


Now, the employee then incurs expense paying cash Rs.30000, Co. passes jounal debitting expense and creditting advance

The Co. is not making any payment >20000 thru unspecified modes, so is dis-allowace applicable to the co.

Dear sirs,
              The facts are as follows:
                                                 A company (Assesse) gives advances to its employee's in modes other than those specified (i.e cash, etc.)who incur various expenses on behalf of the company, upon incurring of expenses a journal is passed

                                                  Expense A/c.. dr
                                                      To Advance A/c

My doubt is whether dis-allowance is applicable or not, If applicable, whether its applicable when.,
            1. Payment exceeding 20000 is made by company to employee. or

            2. Passing of journal exceeding Rs.20000 when exp is incurred. or

            3. Employee makes payment exceeding 20000 to third party.

Pls Clarify..

Thanks in advance for your efforts