Stipend received cash instead of cheques

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vipan (Querist)
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05 March 2008 Dear All,

One of my friend received his stipend by cash instead payee’s cheques and he has resigned from that firm and joined some where else as Article tranee a letter from ICAI branch has been recived by previous employeer regarding objection on cash payment.

Wheather it will effect his new joining in any way.
Please help us in this regard
Thanx in advance

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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05 March 2008 IN MY VIEW IT WILL NOT EFFECT HIS NEW JOINING .IT IS ON PART OF EMPLOYER TO PAY STIPEND BY CHEQUE

R.V.RAO

R.V.RAO (Expert)
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05 March 2008 CASH PAYMENTS UPTO RS. 20000/- ON A SINGLE DAY PER TRANSACTION IS ALLOWED BY IT ACT.
ANY VIOLATION WILL MAKE THE PAYER RESPONSIBLE TO PAY A 100% PENALTY AS PER LAST YEAR FINANCE ACT.
THE STUDENT MAY WELL REPLY (IF ASKED TO) AND EXPLAIN THAT HE RECEIVED THE SAME WHEN OFFERED BY HIS EMPLOYER.NO ISSUE ON AFFECTING HIS CAREER.
R.V.RAO

vipan

vipan (Querist)
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06 March 2008 thnax for u r kind attantion and prompt reply

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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06 March 2008 No it will not affect

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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06 March 2008 It wont affect

CA J M Pattanayak

CA J M Pattanayak (Expert)
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07 March 2008 Hi Vipin
The letter from ICAI will not affect ur friend from joining with the new Place.

But its preferred by ICAI to give stipend thru cheque so that the principal keeps a record stating that the same is being paid.

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