banner_ad

Cash payment

Others 650 views 2 replies

a person engaged in business of selling of agricultural product on commission basis, i.e., purchase agricultural produce from farmers and sale it to market via KRISHI MANDI, now as per current notification, no expenses shall be paid in cash in excess of rs.10000. does this transaction of payment for purchase includes in that payment, can he pay rs. 165000 in cash to those farmers ?

Replies (2)
Payment to a single farmer on a single day in aggregate should not exceed 10,000. Moreover, no disallowance u/s 40A(3) shall be made where payment is made for the purchase of agriculture or forest produce. (Rule 6DD)
This shall apply till limit of Rs. 200000/-. Once this limit is crossed section 269ST will come into operation. Unlike sec 40A(3), there is no exception provided in Sec 269ST. So please note this also.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details