Can I Pay cash to the contractor in Rs:- 600000.00 in whole financial year (Contract amount is near 1cr. for Factory Shed constuction and Machinery installation)
Cash Payment is under 10000.00 per day with intervals.
please help me in this query
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(Cash Payment is under 10000.00 per day with intervals.)
👆It's not exceeding 2 lakhs in the FY...
👆It's not exceeding 2 lakhs in the FY...
If the cash payment from your end is for Rs.10,000 each day in intervals then the same is allowable. However, contractor being recipient, the contractor cannot receive cash in aggregate in entire year from one party i.e., your company more than Rs.2 lakh. Penalty will be levied in case if he receives cash more than Rs.2,00,000 irrespective if that is intervals or lumpsum.
there's possibility of section 269st violations in respect of contractor which will attract penalty under section 271DA
No since single contract and for one event
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