payment in cash excess rs 20000

This query is : Open

sanjeevmehra (Querist)
Follow

16 June 2011 in the case payments made to transporter how much we can pay in cash in a day and second query is can we pay against more than 1 GR we can pay him in cash excess rs 20000/-

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

16 June 2011 In case of transporter you can pay cash in a day up to 350000/-

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

16 June 2011 You can pay cash up to Rs. 35000/- in a day against an expenditure.

This limit can be adhered to on GR to GR basis as each GR is a separate expenditure.
In that way for GR of Rs 30000/- and another GR of Rs 32000/ can be paid on the same day.

CA Rajendra Purohit

CA Rajendra Purohit (Expert)
Follow

18 June 2011 (3A) Where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, the payment so made shall be deemed to be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds twenty thousand rupees:

Provided that no disallowance shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3) and this sub-section where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, in such cases and under such circumstances as may be prescribed47 , having regard to the nature and extent of banking facilities available, considerations of business expediency and other relevant factors :]

48 [Provided further that in the case of payment made for plying, hiring or leasing goods carriages, the provisions of sub-sections (3) and (3A) shall have effect as if for the words “twenty thousand rupees”, the words “thirty-five thousand rupees” had been substituted.]

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now