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
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.
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