Dear sirs/madam, a dealer paying freight of Rs.65000/- per consignment. As per the provisions of the IT Act, the cash payment limit is Rs.35000/-. Is it possible to pay Rs.35000/- on goods received day and balance Rs.30000/- on the next day by cash?
Vinod Kumar K (Advocate/Tax Consultant) (55 Points)
06 October 2011Dear sirs/madam, a dealer paying freight of Rs.65000/- per consignment. As per the provisions of the IT Act, the cash payment limit is Rs.35000/-. Is it possible to pay Rs.35000/- on goods received day and balance Rs.30000/- on the next day by cash?
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 06 October 2011
yes!!
only payment above Rs35000 to a transporter in a single day is disallowed
CA BISHAN AGARWAL
(Profession)
(93 Points)
Replied 06 October 2011
Ashutosh Biswal
(Asst.Manager Finance)
(283 Points)
Replied 06 October 2011
| Originally posted by : CA BISHAN AGARWAL | ||
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yes it can be done but you ensure to have their pan no. otherwise you have to deduct 20% TDS. |
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is there any provison when individual availing this service and making this volume of payment through cash ...
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 06 October 2011
yes u can do....
Restriction of same day same party...
Aparna Raja K.C
(Student)
(520 Points)
Replied 07 October 2011
Only Compannies are required to deduct TDS not individuals
A____ __A
(Student All-ways)
(275 Points)
Replied 07 October 2011
| Originally posted by : Aparna Raja K.C | ||
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Only Compannies are required to deduct TDS not individuals |
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they have to if they were liable to 44ab in preceeding f.y.
periasamy
(DGM Finance)
(91 Points)
Replied 07 October 2011
Whether we can pay the freight for one transporter below 35000/- per day in many no of days. Is it possible.
CA BISHAN AGARWAL
(Profession)
(93 Points)
Replied 07 October 2011
Not only companies even individuals if they crosses the limit u/s 44AB for Tax Audit they also require to deduct TDS if there is no pan no.
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