Cash payment in excess of 20000/-

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Rakesh Sharma (Querist)
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12 December 2013 Dear Experts,

We have the following two queries :-

1. Can we make payment of Rs. 36000/- in two vouchers against two GR (each 18000/-)to same transport in cash. Is it admissible? What is permissible cash payment limit to transporter?

2. We have received the following invoices from our CS :-

i) A single invoice of Professional Fee of Rs.8000 + 3000 as reimbursement on dtd. 07-07-2013
ii) A single invoice of Professional Fee of Rs. 20000/- on dtd. 12-12-2013.

As per query no. 2,should we deduct TDS, if yes, on which amount & in which qtr. of TDS return we have to show these amounts.

Thanks

Ganeshbabu K

Ganeshbabu K (Expert)
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12 December 2013 1)it is okay if two cash payments are on two different dates,,

2)deduct tds on 28000,,no tds required on re-imbursement expences
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3)you have to show in the quarter when you have deducted tds,,means when tds enty was made in your books
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(i)Q2
(ii)Q3

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TRINATH

TRINATH (Expert)
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12 December 2013 1)SEC 40A(3) SHALL BE APPLICABLE AND 36000/- SHALL BE DISALLOWED

I THINK YOU DID TWO GR'S IN SAME DATE.

U/S 40A(3)a : - WHERE PAYMENT MADE FOR PLYING,HIRING OT LEASING GOODS CARRIAGES, THE PAYMENT SHALL MADE BY ACCOUNT PAYEE CHEQUE IF THE AMOUNT OF PAYMENT EXCEEDS RS. 35000/- IN A SINGLE DAY

Rakesh Sharma

Rakesh Sharma (Querist)
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12 December 2013 Dear Ganeshbabu Sir,

Should we include reimbursement while calculating TDS as invoice is consolidated of Professional Fees & reimbursement?

Ganeshbabu K

Ganeshbabu K (Expert)
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13 December 2013 Yes can do so..
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