Can we make cash payment to supplier more than 10000..?
and if yes what is the limit of cash payment to supplier..?
Menu
Cash payment
Replies (5)
no, u/s 40 A(3) cash pmt exceeding 10000 in a day to a supplier in respect of a purchase shall be disallowed.
but that section exclusively says revenue expenditure..?
40A(3) restricts transaction via cash to one person on a day to rupees 10000 and the excess paid above shall be disallowed. However the exception to the section is that you can pay upto rupees 35000 to a person who is in the business of plying and hiring contract carriages and you can pay even upto rupees 2 lacs to a cultivator to purchase vegeatables and other cultivations which is directly cultivated from his own land. Hence to escape disallowance better make payment through bank channels or any mode other than cash.
payments made to revenue expenditure only and even it's capital expenditure, those payments will be excluded from cost of the asset for computation of depreciation
40A(3) amended to cover capital exp also.
Recent Topic
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
- Professional advance taxes
- Surrender pan process
Related Topics
CAclubindia
