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The limit of Rs.35000 for cash payment under section 40A(3) for transport business. My question is whether this limit is for payment TO transporter or payment BY transporter? Please clarify...
Replies (8)
This section is regarding disallowance of expenses made in cash....this limit is for payment by transporters more than 35000
Thanks mam for the reply but I was confused between payment TO or payment BY transporter... So please clarify that....
The act specifies that "in case of payment made FOR plying, hiring or leasing goods carriages" in the section.
Therefore, it denotes the payment TO person carrying on plying hiring or leasing goods carriages.
Therefore, it denotes the payment TO person carrying on plying hiring or leasing goods carriages.
Thank you sir for your reply so it means if any transporter pay for normal expenses then the limit will be Rs.10000...Am I Right?
yes. cash payment made to persons for normal expenses limit Rs. 10,000 only.
OK thank you sir for confirmation...
however you can still pay upto rupees two lakhs in cash for purchase of vegeatable from the farmer directly which is grown on his land....
Thank you sir for more information....
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