Cash Payment over 20,000/- in a day for STOCK Purchase

Tax queries 1214 views 8 replies

Can I make payment against purchase of  stock in CASH over 20,000/- in a day ?

 

Replies (8)

NO

 A SINGLE PAYMENT OVER RS.20000/- TO A SINGLE PARTY IN A DAY IN CASH IS NOT ALLOWABLE IN YOUR CASE.

not allowed more that Rs 20,000/- in cash

u can do the payment but it shall not be allowed to be deducted..................

u/s 40A(3), Rule 6DD, you are not allowed to make payments in exceeding Rs. 20,000 in a single voucher and also to a single party in a day.

Dear Vijay,

My qn. is here stock means what - stock in trade or shares?

Thanks

Debashis

Dear Vijay Kr. Mishra

Mr. Ankit Bhandari is right.

Best Regards with Jai Ho

S.K.Gupta

 

 

if u wil do so then u cant debit the amount of the stock to your p&l a/c ...


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