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Cash payment in a day

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)

07 September 2011

Can we pay cash more than 35000/- in a day against various LR to a single transporter. (eg. 15000 per tirp x 4 trip = 60000/-)

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12 Replies

Amit Gupta (Loosening Myself) (1508 Points)
Replied 07 September 2011

Yes..u cn do it ..Sec 40A(3) does nt prohibits this..

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CA Hardik Bunha (self) (2121 Points)
Replied 07 September 2011

Please read question carefully Mr. Amit Gupta......

No u can not pay more than 35000 to a single transporter for 1 day IN CASH.

no matter FOR NUMBER OF TRIPS........

mayur (article) (32 Points)
Replied 07 September 2011

Hardik is correct the sec 40A(3) clearly specifes that no cash in excess of Rs 35000/- to be made to any transporter irrespective of number of lrs or invoice copies .

Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 08 September 2011

agreed with hardik.............................

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 08 September 2011

NO.U CAN NOT PAY...

RULE:-IN A SAME DAY TO ONE PERSON SINGLE PAYMENT MORE THAN PRESCRIBE LIMIT IS DISALLOWED U/S 40A (3),U R PAYING TO SINGLE TRANSPORTER.

IN CASE PAYMENT TO TRANSPORTER LIMIT IS 35000

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CA. Anubhav Jaggi (CA) (104 Points)
Replied 08 September 2011

Section 40A(3)restricts the payment in cash: -to a single person -in a single day -for a single expenditure Hence, payment in cash exceeding Rs.35000 to transporter for more than one invoice is allowed.

(Guest)

Any payment exceeding Rs. 35,000/- is not possible. whole expense will be disallowed.

Jitender Sharma (Manager) (24 Points)
Replied 17 December 2012

Please let me know that if 2 vehicles placed by the one transporter, but we are paying more then 35000/- each driver in a day to drivers then it is possible or not ??

Jitender Sharma

CA rahul (BCOM(H) ACA) (725 Points)
Replied 18 December 2012

no u can not pay more than rs 35000 to a single transporter in a same day irrespective of no of invoice

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Jitender Sharma (Manager) (24 Points)
Replied 18 December 2012

Mr. Rahul,

We want to giving these amount to driver not to transporter then why these is not allowed ?

and as per my knowledge we can't pay more thn 35000/- to one pan holder is that tru ?

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CA rahul (BCOM(H) ACA) (725 Points)
Replied 18 December 2012

hi jitender

please let me clarify are you paying this amount against transporter invoice.

1 Like

Jitender Sharma (Manager) (24 Points)
Replied 18 December 2012

Hi Rahul,

Not against any transporter's doc. i am going to pay these amount to drivers, but said vehicles are placed by the one transporter to me and i hve to pay these amount to his drivers for route exp (like diesel, toll tax etc.) not to particular transporter, so that i want to know this.