Payment to transporter above rs.20000

This query is : Resolved

ATUL (Querist)
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10 June 2012 AS ONE PROFESSIONAL.. ...REPLY MY QUE IS AS UNDER...
Re: sub-section (3A) of section 40A of the Income-tax Act

Dear Sir,

The limit of cash payment of (Rs. 20000/-increased to Rs. 35000/-) has been increased in case of payment made for plying, hiring or leasing goods carriages.

IS IT MEAN ...IF WE CAN HIRE TRUCK OF ANOTHER PERSON WE CAN MAKE ...CASH PAYMENT ...AT A TIME RS.35000 ???

LOOK4U@REDIFFMAIL.COM

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 June 2012 In case of transporters, the limit is Rs. 35,000/- per day.

Accordingly, you can make a CASH payment of an amount not exceeding Rs. 35,000 in a single day without attracting the provisions of Section 40A(3) or 3A.

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