Wages paid in cash over rs.10000 to number of workers -40a(3
This query is : Resolved
Bazeer Ahmed
(Querist)
06 April 2018
Sir(s) / Madam,
We aware that from April 2018 onwards expenses over Rs.10000/- cannot be paid in cash (earlier it was Rs.20000) Section 40A(3) restricts to do so.
1.When we pay Rs.500000/- in cash towards wages to a number of workers. Shall it be attract penalty u/s 40A(3)
2. Advance payment made to staff over the thershold amount of Rs.10000/- in cash attract the penalty under this section? As the rule is silent about advance It only restrict the expenses in a day over Rs.10000/- in cash.We assume that there wont be any restriction to pay as advance of any amount. Is our assumption correct?
Kindly clarify
We aware that from April 2018 onwards expenses over Rs.10000/- cannot be paid in cash (earlier it was Rs.20000) Section 40A(3) restricts to do so.
1.When we pay Rs.500000/- in cash towards wages to a number of workers. Shall it be attract penalty u/s 40A(3)
2. Advance payment made to staff over the thershold amount of Rs.10000/- in cash attract the penalty under this section? As the rule is silent about advance It only restrict the expenses in a day over Rs.10000/- in cash.We assume that there wont be any restriction to pay as advance of any amount. Is our assumption correct?
Kindly clarify
CA R SEETHARAMAN
(Expert)
06 April 2018
1 No penalty u/s 40A(3) if payment to each individual not exceed 10,000.
2 Advance payment to employees restrictions apply.
2 Advance payment to employees restrictions apply.
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