Limit for disallowance of business expenditure made in cash above rs 10,000/-

"These payments are made in India to different consulates in cash. Can we make cash payment above Rs 10,000/- in such case ?
Is there no option available to pay by DD or online bank transfers?

Yes. That Option is there but many times Considering Urgency, based on Departure dates of Group tours (To get Visa of all tour participants) before due date, Cash payment is easy instead of making DD/NEFT

 

Will Cash Exp if exceeds Rs 10,000/- disalloable In this case ?

as per new provision any expenses I.e. capital or revenue incurred by way of cash is not allowable unless assessee fails to prove genuine cause. if you have genuine cause then your case may be considered for allowance

what if cash payment made to transporters

it ll be disallowed

with the advancement of technology if we go out with this reason definitely it will not be allowed. ..By the way why do we need to pay cash to consulate do they really accept that...To my knowledge they prefer Transfers or in any case DD but paying in cash I don think it would work...anyhow for your query it will be disallowed

TRANSPORTER LIMIT IS STILL 35000/- A DAY 

35000 limit is tds threshold, 10000 is for revenue and capital expenditure

TDS limit for transporters is 30000, and for cash payment it is still Rs 35000/-

Thanks for your reply but still confusion exists regarding the cash payment to transporters.

We r in FMCG Industry and cash payment to tranporters are frequent.

What is in Act and Rules , May please reply????

 

 

 

 

Vikash , As per 194-c TDS is deductible at 10% if with pan and 20% without pan for an amount which is 30,000 one time payment or Aggregate 75,000 for the F.Y
and for cash transactions corresponding to section 40 -A and also subject to Rule 6DD ;
the limit of 35000 per day still remains the same so till that amount in case of transport operators you can have cash payments but suggested not to encourage and try to avoid cash payments.
however attaching you some links which would support you in Understanding the situation

for TDS
https://www.cutmytax.com/tds-rates-for-f-y-2012-13/
for cash limit
https://www.simpletaxindia.net/2017/03/restriction-on-cash-transaction-in-budget-2017.H T M L?m=1

hope this would clarify. :-)

thanks mr Sunil

As such Travel Agents makes payment on behalf of their clients so it can be argued that each payment was made to consulate office on behalf of each passenger.There is provision of accepting DD , but if there is limitation as to time then cash is preferred by Travel Agents.Some of the consulates also accepts online payment .It is not expenses incurred by Travel Agency Co.