Cash payment

This query is : Resolved

Sandeep (Querist)
Follow

26 July 2013 Dear Sir,
I am a Transporter and take trucks on hire. I need to pay advance at the time of placement of truck and after safe unloading I pay the balance hire back. The typical freight is about Rs. 45,000/- per truck and we need to pay cash of Rs. 30,000/- as advance and Rs. 15,000/- balance after 10 days.

No as per the IT Rules, this is allowed. But my next question is that the same truck comes to me 50 times in a year. Is there a cap on the total cash payment to a single Pan card holder in one financial year.

Please clarify this doubt.

Sandeep

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

26 July 2013 if u pay in cash for more then 35,000 in a day then it will be disallowed u/s 40A.

Sandeep

Sandeep (Querist)
Follow

26 July 2013 Hi Tushar,

Thank you for the response.
First - Is it 30k or 35k per day.
Second - Can I pay the same pan card holder (truck owner) Rs. 30k or Rs. 35k every week without deducting TDS.

Sandeep

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

26 July 2013 it is 35k per day basis.
yes u can pay bt check day wise it shouldnt exceed 35k.

Sandeep

Sandeep (Querist)
Follow

26 July 2013 Thanks a lot Mr. Tushar

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now