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Cash payment of freight charges above rs 20000


I am doing Interim Audit of a company..

I wanted to know that if cash payment is done for Freight charges above Rs 20000 will it be allowed?will it be covered under Exception 6DD?

And Rs 35000 is it only for Transporters or to all?

 
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frieght payment not covered by rule 6DD.

Limit of Rs. 35000 applicable if this payment made to transporter for frieght otherwise limit is Rs. 20000

 


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no wxception 6dd wont be covered in the above

 


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It means this payment will be disallowed u/s 40A 3??

What if this Freight Charges have been paid to Indian Railway??

will it still be disallowed?

 

 
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no need to deduct if payment is made to railways or concor.


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no need to deduct if cash payment is more than 20,000.


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MANAGER ACCOUNTS


Read sec 40 A(3) OF INCOME TAX ACT...

Rule 6DD FOR EXCEPTIONS....

Rs 35000 allowed to transporter not other...for other maxi Rs 20000 allowed.


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