payment to sister concerns cash exceeding Rs.20000/-
This query is : Resolved
vignesh srinivasan
(Querist)
09 June 2011
payment in cash to sister concerns exceeding Rs.20000/- attracts any penalty or disallowance?
Rakesh Jain
(Expert)
09 June 2011
Dear S.Vignesh,
In your case you have not cleared the nature of transaction.
If amount has been paid for any kind of current exp or future exp than provision of sec 44A(3) or Sec 44A(3A) shall apply on the amount payer.
At the same time if the said amount has been received as advance or loan than the provision of Sec 269ss shall attract on the amount receiver.
Hope above information is useful to you.
With regards,
In your case you have not cleared the nature of transaction.
If amount has been paid for any kind of current exp or future exp than provision of sec 44A(3) or Sec 44A(3A) shall apply on the amount payer.
At the same time if the said amount has been received as advance or loan than the provision of Sec 269ss shall attract on the amount receiver.
Hope above information is useful to you.
With regards,
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