Cash voucher
This query is : Resolved
19 October 2012
Hello sir,
What is the maximum amount that we can pay by Cash voucher and what is the consequences if i pay more than that maximum amount. In my organisation my boss paid 75000/- on a single voucher.
Hello sir,
What is the maximum amount that we can pay by Cash voucher and what is the consequences if i pay more than that maximum amount. In my organisation my boss paid 75000/- on a single voucher.
19 October 2012
Sec 40 (A) (3) will get attracted and the same may not be allowed as business expenditure .
19 October 2012
Based on the nature of payment section 40A(3) will attract and disallow for expenditure. As well as section 269SS/T also attracts based on the nature of payment.
Clarification:
1) In case such payment is made for the purpose of to met any expenditure which is debiting to P&L a/c or repayment of expenditure which is previously debited to P&L a/c(i.e payment to sundry creditors) Then section 40A(3) will attract and the sum of Rs.75000 would be disallow as expenditure and added back to your net profit at the time of filing of your return of income.
2) In case such payment is made for the repayment of unsecured loans then section 269T will attract and the same amount may be leave as penalty by the AO.
3) If such payment made as advance then no consequences.
Note: For your better understanding if any required then please replay the nature of transaction and payment.
OM SAI SRI SAI JAI JAI SAI
Clarification:
1) In case such payment is made for the purpose of to met any expenditure which is debiting to P&L a/c or repayment of expenditure which is previously debited to P&L a/c(i.e payment to sundry creditors) Then section 40A(3) will attract and the sum of Rs.75000 would be disallow as expenditure and added back to your net profit at the time of filing of your return of income.
2) In case such payment is made for the repayment of unsecured loans then section 269T will attract and the same amount may be leave as penalty by the AO.
3) If such payment made as advance then no consequences.
Note: For your better understanding if any required then please replay the nature of transaction and payment.
OM SAI SRI SAI JAI JAI SAI
19 October 2012
And the maximum cash payment limit is
For the purpose of expenditure Rs.20000
For the purpose of repayment of unsecured loans NIL (if at any time their credit balance exceeds Rs.19999.)
For advances no limit.
OM SAI SRI SAI JAI JAI SAI
For the purpose of expenditure Rs.20000
For the purpose of repayment of unsecured loans NIL (if at any time their credit balance exceeds Rs.19999.)
For advances no limit.
OM SAI SRI SAI JAI JAI SAI
19 October 2012
Because of there is some exemptions to cash payments exceeding such above prescribed maximum limit so Please refer section 40A(3) and section 269SS & 266T for better understanding and clarification. Or replay the nature of transaction and payment.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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