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Issue of cash payment

Rakesh Patel (ACCOUNTANT) (109 Points)

30 March 2012  

Respected sir,

 

I have pay to my party (creditor) 150000/-. can i pay to party cash Rs.15000/- (cash) * 10 Days in one Month?

Pls reply me. 


 10 Replies

shijil (Article) (32 Points)
Replied 30 March 2012

Yes.... you can pay up to 20000 per day in cash above which will be disallowed

1 Like

Sonam Bidasaria (CA) (770 Points)
Replied 30 March 2012

By party, u mean creditor?

1 Like

FORAM MEHTA (ARTICLE ASSISTANT) (52 Points)
Replied 30 March 2012

yes, i agree , u can pay not more than Rs 20000/- per day

1 Like

CA ROSHAN (Partner) (93 Points)
Replied 30 March 2012

If creditor is for capital expenditure, you can pay whole sum in a day in cash but if it is for revenue expense, you can pay as desired by you but be careful your case may be in scrutiny.

1 Like

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 30 March 2012

If creditor is for capital expenditure, you can pay whole sum in a day in cash but if it is for revenue expense, you can pay as desired by you but be careful your case may be in scrutiny.

yes right said above, because sec 40 A(3) does not apply to payment of capital expenditure.restriction on only revenue expenditure.maxi 20000 one day one person.

above case one can do....

1 Like

Ramarao Gullipalli (Dy.Manager-Finance & Accounts)   (99 Points)
Replied 30 March 2012

i agree with Roshan Sir....

sandesh Dharmaji Lakhan (ACCOUNTS MANEGER) (50 Points)
Replied 02 April 2012

I am also agree with Mr. Praveen Sir & Mr. Rama Rao Sir.

Ajay Kumar (Accounts Executive) (21 Points)
Replied 02 April 2012

Yes , I am fully agree with Mr. Raushan and Praveen

CA PARTH SHAH (In Practice) (1861 Points)
Replied 07 May 2012

IT IT IS FOR REVENUE EXPENDITURE THEN BETTER SHOW IN YOUR BOOKKS PAYMENT ON DIFFERENT DAYS UPTO 20,000 AND TAKE RECEIPT FROM THE CREDITOR OF THOSE DAYS ON WHICH YU PASSED THE ENTRIES. THIS WILL SAVE YOU FROM SCRUTINY AND PROVISIONS WILL ALSO BE SATISFIED

Firoz Aga (Asst. Administration Office)   (21 Points)
Replied 03 September 2012

I work for MNC with around 350 staff members. The Company provides subsidised staff canteen and  provides fund every year for holiday home. The Staff Canteen and Holiday Home Is managed by our Secretary. The trustee/Secretary is embezzling the funds by dealing with the canteen contractor as well as holiday home owners in cash. As such most of the transaction i.e 95% is done in cash. Does the law provides us to deal in cash and what is the limit. Who are the authority whom we can approach and proper action initiated against the Secretary.


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