05 December 2012
Sir One of my clients purchased Machinery for Rs 10 lakhs for which they have paid an amount Rs 52000 to the Transporter by cash. In this connection kindly advice whether it is disallowable as per IT Rules.Assesee is liable for tax audit .Please give the position as per Income tax Rules. In this respect please note that since it is not the expense of the assessee as it is a Capital asset and is capitalised, whether disallowance of cash payment in excess of Rs 20000/- is applicable. Thanks & Rgds
05 December 2012
Sir Thank you for the reply.However I am not clear whether in my case the freight paid for transportation of capital goods Rs 52000 to be disallowed or not.Hence kindly clarify RGDS
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