Payment in cash above Rs. 20,000/-
This query is : Resolved
Yajuvendra Rawat
(Querist)
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.
CMA Ramesh Krishnan
(Expert)
03 May 2010
up to single expenses is not crossing Rs.20000/ is ok
CA krishna Kamthe
(Expert)
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.
CS Jithesh (ACS,)
(Expert)
04 May 2010
The Cash transaction in aggregate should not exceed Rs 20000, otherwise payment via cheque or DD should be done.
CMA Arif Farooqui
(Expert)
05 May 2010
agree with experts
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