Payment exceed Rs 20000.

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kulvinder singh (Querist)
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06 January 2010 1. Can we pay More than Rs. 20000 for captial expenditure(purchases of wood, ply).

2. In a singla day, we can pay more than Rs 20000 to One party for different bills?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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06 January 2010 You can purchase capital goods By cash more than 20000/-

you can pay to transporter up to 35000/- its applicable from 1.10.2009

other case it will be disallowed

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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06 January 2010 1. yes
2. no

kulvinder singh

kulvinder singh (Querist)
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06 January 2010 i purchased wood/ply for office renovation of amount 55000\- and pay that amount in cash.i added that amount in furniture & fitting head(as captial Exp.).is it right or possible.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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06 January 2010 its an capital expenditure

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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06 January 2010 Dear
1)Sec 40A(3) i-e Payment inexcess of Rs.20000 in cash or cross cheque, attracts only to those items which comes to P/L A/c, since you purchased asset which is not come to P/L A/c so there is no retriction of Cash or cheque
2)Different Bills below Rs.20000 but paid to same person in a single day must be aggregate so you can not paid.

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