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about Cash Payment

02 April 2019

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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4 Replies

RAJA P M ("Do the Right Thing...!!!") (127260 Points)
Replied 02 April 2019

(Cash Payment is under 10000.00 per day with intervals.)

👆It's not exceeding 2 lakhs in the FY...

Dipika Shah (Partner) (188 Points)
Replied 02 April 2019

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.