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Accounts

SACHIN KHETAWAT (Student) (349 Points)

04 January 2017

IF ENTITY PURCHASE FIXED ASSET ON CREDIT , CAN HE PAID THE AMT IN CASH OR NOT

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11 Replies

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 04 January 2017

yes you can pay the amount in cash depending on the price of the fixed asset

SACHIN KHETAWAT (Student) (349 Points)
Replied 04 January 2017

if amount in lakhs or crores

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 04 January 2017

then not possible you have to pay it through cheque

SACHIN KHETAWAT (Student) (349 Points)
Replied 05 January 2017

can u tell me why? i mean any law regarding the same?

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 05 January 2017

according to income tax act sec 40 A an ant exceeding 20000 per day in cash is not allowed

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 06 January 2017

and how can you pay so much money in cash maximum limit for cash transactions is only 3 lakhs

SACHIN KHETAWAT (Student) (349 Points)
Replied 06 January 2017

YEA BUT 20000 LIMITS FOR PROFIT AND LOSS A/C ITEM. AND I ASKED FOR FIXED ASSETS

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 06 January 2017

but why do you want to pay such huge amount in cash when govt is encouraging digital transactions

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 06 January 2017

Govt is also planning to limit all cash transactions to Rs 3 lakhs

SACHIN KHETAWAT (Student) (349 Points)
Replied 14 January 2017

I AM NOT PAYING SUCH AMT. I JUST WANNA CLEAR THAT ONE CAN PAY ANY AMT IN CASH FOR PUR OF FIXED ASSETS . AS NO LAW REGARD THE SAME. BUT IF THERE IS LAW AG THE SAME. THEN I WANNA TO KNOW SUCH LAW OR RULE.

Ashwin Kumar Prabhakar (Specialist Standard Chartered Global Business Services Pvt Ltd) (169 Points)
Replied 04 February 2017

:As per Finance Bill 2017 w.e.f 01.04.2017 i.e FY 2017-18 (AY 2018-19) it has been proposed that any cash payments of capital expenditure above Rs 10,000 shall not be considered to determine actual cost of asset under Section 43(1). Similarly, no deductions shall be available under section 35AD for any capital expenditure in cash in excess of Rs 10,000.