Cash payment

can cash payment of 20000 can be made for a party??

 

what if cash payment is made below 20000 per day but paid 35000 in 3 days for one product purchased??

 

 

can cash payment of 19000 be made to same party  twice a day for two bills?

Replies (15)

yes u can pay two or more bills in a same day.

i mean more than 20000 in aggregate to the same party for two bills. or the payment to party shall be limited to 20000 in a day irrespective of number of bills?

1 PARTY TWO BILLS 19000+19000 CAN PAY IN A SAME DAY........

According to sec 40A(3) Any Expenditure for which payment or aggregate of payment made in a day to a person in excess of Rs 20000/- in cash the whole of such amount will be disallowed,so it will be restricted to payment of Rs20000/- in a day to a person.irrespective of number of bills issued.

S 40A 3 "incurs any expenditure for which payment or aggregate of payment is made to a person in a day is in excess of Rs.20000"in cash the whole of such expenditure will not be allowed as a deduction

Read more at: /forum/sec-40a-3--122467.asp#.UNQZ6KzYTlc
S 40A 3 "incurs any expenditure for which payment or aggregate of payment is made to a person in a day is in excess of Rs.20000"in cash the whole of such expenditure will not be allowed as a deduction

Read more at: /forum/sec-40a-3--122467.asp#.UNQZ6KzYTlc

You need to refer to Rule 6DD as well to find out exemptions for cash payments in excess of Rs. 20K

regards

 

Restricted to payment of Rs.20000/- in a day.


 

You can not pay/take more than Rs.20000/- to one person on same day in cash. 

There is no restriction in taking business receipts (e.g. sale proceeds) more than 20,000/- from one customer, through one bill and even in single transaction.

the restriction of section 40A (3) is on the payer and not on the recepient.

 

Cash Payment to any party per day not to be exceed Rs.20000/- in any case.

Originally posted by : deepaksamra

Cash Payment to any party per day not to be exceed Rs.20000/- in any case.

Fully Agreed
Max.20000 per day per party
Originally posted by : Gaurav A. Potdar

According to sec 40A(3) Any Expenditure for which payment or aggregate of payment made in a day to a person in excess of Rs 20000/- in cash the whole of such amount will be disallowed,so it will be restricted to payment of Rs20000/- in a day to a person.irrespective of number of bills issued.

S 40A 3 "incurs any expenditure for which payment or aggregate of payment is made to a person in a day is in excess of Rs.20000"in cash the whole of such expenditure will not be allowed as a deduction

Read more at: /forum/sec-40a-3--122467.asp#.UNQZ6KzYTlc

S 40A 3 "incurs any expenditure for which payment or aggregate of payment is made to a person in a day is in excess of Rs.20000"in cash the whole of such expenditure will not be allowed as a deduction

Read more at: /forum/sec-40a-3--122467.asp#.UNQZ6KzYTlc

As per Sec 40A(3) Cash payment upto Rs. 20000 per day is allowed irrespective of the bill allowed.
Yes you can pay 2 bills to 1 party......

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