Sec 40(A)(3) applicable or nt???urgent

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madhur gupta (Querist)
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25 February 2011 Hello friendz
Can we make payment to transporter in following manner:
01/12/2010 Rs. 25000/- cash Gr.No.101
01/12/2010 Rs. 28000/- cash Gr.no.102

Here payment is given to same transporter only
In this case material is coming in 2-3 trucks from same transporter and we make payments to them in cash but there GR.No.is different for each truck
plz ans it
thx

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 February 2011 Since the limit applicable to the payments to transporters is 35000/ and both GRs are constituting separate expenditures, you can make payment in cash.

caferoz

caferoz (Expert)
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26 February 2011 no dis-allowance for your query.
you can pay upto 35000/- single transaction.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 February 2011 Pl refer question and answer no.9 in CBDT Circular 715 dated 08/08/1995 in www.incometaxindia.gov.in

Ashok Asthana

Ashok Asthana (Expert)
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26 February 2011 Yes. Be cautious and keep proper records for incoming material.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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26 February 2011 as per circualr no 715 dt 8-8-95
Question 9 : In case of payments to transporters, can each GR be said to be a separate contract, even though payments for several GRs are made under one bill ?

Answer : Normally, each GR can be said to be a separate contract, if the goods are transported at one time. But if the goods are transported continuously in pursuance of a contract for a specif¬ic period or quantity, each GR will not be a separate contract and all GRs relating to that period or quantity will be aggregat¬ed for the purpose of the TDS.
So in your case it is continuous nature so it will be disallowed
do one thing make both cash voucher on separate date.

Surrender

Surrender (Expert)
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27 February 2011 Each driver / owner of the delivering lorry can demand that he needs freight in cash before unloading the material and would not accept any cheque in lieu thereof

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