Cash transaction in a year

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Santosh

Santosh (Querist)
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17 May 2012 I want to know that in a particular year how much cash purchase can be done from a particular vendor.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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17 May 2012 Limit is upto Rs. 20,000/- per day

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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17 May 2012 There is no annual limit as such. However, there is limit for payment against expenditure per day which is Rs. 20000.00 as set by Section 40A(3). There are some exception to it which are given in Rule 6DD.

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CA Rahul Trada

CA Rahul Trada (Expert)
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17 May 2012 This Rs.20,000/- limit is against payment of expenditure in a particular day. But there are some exception to it for which are also specified in Rule 6DD

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