Cash payments!
This query is : Resolved
25 February 2015
Dear Experts
Mr. A (Individual), contractor
M/s ABC (Firm), contractee
ABC has paid few of the payments in cash exceeding Rs. 20k on few dates to Mr. A after deducting TDS against total value of contract.
While Mr. A will raise the bill on completion of contract.
Cash payments done to contractor are disallowed or allowed?
Thanks
Mr. A (Individual), contractor
M/s ABC (Firm), contractee
ABC has paid few of the payments in cash exceeding Rs. 20k on few dates to Mr. A after deducting TDS against total value of contract.
While Mr. A will raise the bill on completion of contract.
Cash payments done to contractor are disallowed or allowed?
Thanks
25 February 2015
will be disallowed as per section 40A(3)
Message likes :
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25 February 2015
Thanks Mr. Sampat
One small query please
As Firm has already made the payments in cash exceeding Rs. 20k in a single day. Can we split & show the amount in different dates say 18k+15k+17k??
Pls. comment.
One small query please
As Firm has already made the payments in cash exceeding Rs. 20k in a single day. Can we split & show the amount in different dates say 18k+15k+17k??
Pls. comment.
25 February 2015
Hii Mr. Sampat
I have come across with following-
Adjustment in books Rule 6DD(d)- Where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee.
in the light of above rule, i think cash payment exceeding Rs. 20k are allowed.
Kindly re-consider the same.
Thanks
I have come across with following-
Adjustment in books Rule 6DD(d)- Where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee.
in the light of above rule, i think cash payment exceeding Rs. 20k are allowed.
Kindly re-consider the same.
Thanks
25 February 2015
rs. 20000/- are allowed in some cases but theses situation will be prove by you will difficult before AO.
25 February 2015
your case does not fall in any clause of rule 6dd as wat u stated doesnt have the same transacrtion in your case as its for adjusting entry.
hence will be disallowed in your present case.
hence will be disallowed in your present case.
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