24 August 2012
Sir, Shall we pay travelling expenses like hotel bills, more than Rs.50000 on a single day by cash. actually we paid to the staff by means of advance for travel. but at the time of his return he brings a hotel bill for Rs. 88000, the entire amount paid by the staff through on various installments but more than 20000. shall we account the total amount of Rs.88000 as single cash payment entry against bill. any TDS will effect. The above travell is fully official purpose only.
24 August 2012
If the payment is made to staff for the out of pocket expenses met by him for the purpose of the official tour or visit, then it shall not attract section 40A(3) nor the provision of TDS are applicable on the same.
CAclubindia
