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CASH PAYMENT LIMIT
What is cash payment limt for Labour contractor in garment manufacturing factory under GST act and income tax act ???
Replies (1)
Under GST Act there is no such limit for Cash Payment per day.
However, under the Income Tax Act 1961 we have Provision regarding Cash Payment and Cash Receipts.
As per the Provision of Section 40A(3) of the Income Tax Act 1961, Payment exceeding Rs. 10,000 in CASH should be made in A/c Payee Cheque, DD, or Electronic Clearing System ( ECS ). If not complied with this Provision, then that particular payment will be disallowed under the Income Tax Act 1961.
Warm Regards.
However, under the Income Tax Act 1961 we have Provision regarding Cash Payment and Cash Receipts.
As per the Provision of Section 40A(3) of the Income Tax Act 1961, Payment exceeding Rs. 10,000 in CASH should be made in A/c Payee Cheque, DD, or Electronic Clearing System ( ECS ). If not complied with this Provision, then that particular payment will be disallowed under the Income Tax Act 1961.
Warm Regards.
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