Cash purchase in single day

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Assistant
20 Points Posted on 09 May 2021
Dear Sir

Cash purchase disallowed to us in a single day if it increase in 10000/- but supplier creditor give us to cash receipt for Rs 30000/- in a single day so can it allowable to supplier
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On 09 May 2021 at 18:38 Report
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Quick Summary
This discussion clarifies daily cash purchase limits, particularly concerning payments to suppliers and transporters. While a general limit of £10,000 applies to cash purchases that can be added to an asset's cost for depreciation, suppliers can receive up to £30,000 in a single day. However, for transporters, this limit is increased to £35,000 without attracting disallowance.

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Chartered Accountant
20 Points Posted on 09 May 2021
No it will be disallowed but in case of transporter the limit will be 35000 rupees in cash
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On 09 May 2021 at 18:46
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Practice
20 Points Posted on 09 May 2021
It shall be disallowed for u but ur supplier can receive 30000/-. no problem in that.
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On 09 May 2021 at 18:49
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Chartered Accountant
20 Points Posted on 09 May 2021
Not 30000 it's 35000 rupees in cash
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On 09 May 2021 at 18:52
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Assistant
20 Points Posted on 09 May 2021
Thank you lotus choudhary Sir
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On 09 May 2021 at 19:02
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Practice
20 Points Posted on 09 May 2021
Your welcome sir.
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On 09 May 2021 at 19:06
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Chartered Accountant
20 Points Posted on 10 May 2021
There is one exception to this rule where you can pay up to Rs 35,000 to a transporter in a day without attracting the disallowance. Likewise in case you pay any amount beyond Rs 10,000 for acquiring any asset, such payment is not allowed to be added to the cost of the asset for the purpose of claiming depreciation.
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On 10 May 2021 at 09:29

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