Payment exceed Rs 20000.
This query is : Resolved
kulvinder singh
(Querist)
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?
2. In a singla day, we can pay more than Rs 20000 to One party for different bills?
Ram Avtar Singh
(Expert)
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
you can pay to transporter up to 35000/- its applicable from 1.10.2009
other case it will be disallowed
06 January 2010
1. yes
2. no
2. no
kulvinder singh
(Querist)
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.
06 January 2010
its an capital expenditure
CA.SHAHZAD SAYYED
(Expert)
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.
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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