I am aware that payment of expenses in cash more than Rs.20,000/- to a single party in a single day will be disallowed u/s 40(4)(3) of Income Tax Act, 1964.
Please let me know, whether it is applicable if paid against different invoices.
For Ex: - ABC Ltd. raised 3 bills of expenses nature for Rs.15,000/-, 18,000/- & 16,000/- Dated 17/11/2011. All the bills were paid by creating different cash payment vouchers Dated 17/11/2011. Will the expenses be allowed or disallowed?
CAclubindia
