Cash payment
This query is : Resolved
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
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
26 July 2013
if u pay in cash for more then 35,000 in a day then it will be disallowed u/s 40A.
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
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
26 July 2013
it is 35k per day basis.
yes u can pay bt check day wise it shouldnt exceed 35k.
yes u can pay bt check day wise it shouldnt exceed 35k.
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