payment of morethan 20000 in cash
This query is : Resolved
14 January 2010
can a travelling co. pay morethan 20000 in cash to escort/ employee for travelling exp. on the behalf of the co.
14 January 2010
There will be disallowance
14 January 2010
Disallowable
14 January 2010
yes disallowed.
14 January 2010
actully rhere is a practical problum, co. requires to pay cash for travelling exp of toure. co cant pay by cheque.please give ans on practical basis and only in case u have done audit of travelling co.
14 January 2010
If possible then break up the travelling bill so that a single bill does not exceed Rs. 20,000 or show payment made not exceeding Rs. 20,000 on a single day
14 January 2010
i wanr to whether it is alowable if not there is any case law regarding disallowance of the same.
19 January 2010
u/s 40A(3) Where the assessee incurs any expenditure in respect of which payment or aggregate of payments made to a person in a day, otherwise than by a A/C payee cheque exceeds 20,000/- no deduction shall be allowed.
This make two conditions both payment and expense bill should exceedd 20,000/-.
Co can pay employee more than 20,000/- in cash but the bill of expenses provided by employee should be less than 20,000/-. more than one bill can be paid in one payment. Then it will be allowed.
But if bill is more than 20,000/- and payment is also more than 20,000/- then disallowed.
This make two conditions both payment and expense bill should exceedd 20,000/-.
Co can pay employee more than 20,000/- in cash but the bill of expenses provided by employee should be less than 20,000/-. more than one bill can be paid in one payment. Then it will be allowed.
But if bill is more than 20,000/- and payment is also more than 20,000/- then disallowed.
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