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
Aditya Maheshwari
(Expert)
14 January 2010
Disallowable
Murtaza I Bhagat
(Expert)
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.
Aditya Maheshwari
(Expert)
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.
CA Prashant Gupta
(Expert)
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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