Cash Payment for new car purchase

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Neha Bhola

Neha Bhola (Querist)
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19 October 2010 Is it allowed to pay in cash a sum of nearly 2-2.5 lacs as down payment to a car dealer by a firm?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 October 2010 Income tax act not allows any payment more Rs.20000/- by cash

CA Shiv

CA Shiv (Expert)
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19 October 2010 Yes can pay by giving PAN NO.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 October 2010 If the firm who is paying cash is not a car dealer, there is no harm in paying the down payment in cash.

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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20 October 2010 There is no disallowance for payments related to capital expenditure in Income tax so you can make payment in cash or to avoid complications u can get Cash DD and pay it to dealer.

taxindiaconnect

taxindiaconnect (Expert)
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20 October 2010 Agreed with sidharth

Praveen Sharma

Praveen Sharma (Expert)
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20 October 2010 Agree with Sidharth view.

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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20 October 2010 To clarify the assesse is not a car dealer means it is capital expenditure for him and ceiling of cash payment for more than Rs. 20000 is not applicable in this case.

Regards
K.L.Paliwal

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