Payment in cash above Rs. 20,000/-
This query is : Resolved
03 May 2010
Dear Sirs & friends,
Our company has paid Rs.64,750/- in cash to a marketing executive. We had given him an advance of Rs. 50,000/- for expenses. When he returned he showed up expenses of Rs. 64,750/-. We have accounted all the expenses in Local Travelling and made cash voucher. Is this practice feasible , Will this attract section 40A (Payment in cash above Rs. 20,000/-) Please give your valuable suggestion.
Our company has paid Rs.64,750/- in cash to a marketing executive. We had given him an advance of Rs. 50,000/- for expenses. When he returned he showed up expenses of Rs. 64,750/-. We have accounted all the expenses in Local Travelling and made cash voucher. Is this practice feasible , Will this attract section 40A (Payment in cash above Rs. 20,000/-) Please give your valuable suggestion.
03 May 2010
If he had not made any consolidate payment more than 20000/- then it is ok. If he had made payments in various head and on different date then it is also ok.
03 May 2010
up to single expenses is not crossing Rs.20000/ is ok
04 May 2010
single payment against one bill less than 20000 in cash in day is allowed eg bill no 1 amount Rs 30000 if on 5 dec make payment of 15000 in cash and on 6 dec make payment of 15000 then it allowed.
or 2 bills each amount 19000 each if make payment in cash 19000 each even though from one party it allowed.
or 2 bills each amount 19000 each if make payment in cash 19000 each even though from one party it allowed.
04 May 2010
The Cash transaction in aggregate should not exceed Rs 20000, otherwise payment via cheque or DD should be done.
05 May 2010
agree with experts
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Form 10BD Filling
- Eway bill for machinery reparing
- Query regarding TDS on EPFO Higher Pension Arrears*
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
