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.
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
