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Limit of payment by cheque?

Ghanshyam Lohar (ACCOUNTANT) (60 Points)

22 September 2019

If someone provide kaccha bill then how much limit we can pay him through cheque?

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (127153 Points)
Replied 22 September 2019

No more specific limits through cheque if it's reasonable payments.

Kapadia Pravin (17249 Points)
Replied 22 September 2019

No limit on cheque payments but accounting kaccha bill may create issues in assessment.
please keep address proof, Pan card copy of party to whom you are paying.

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sabyasachi mukherjee (26053 Points)
Replied 22 September 2019

Kaccha bill to hoi nehi sakta...
kaccha bill ko kaccha paisa payment karo.

Rajnish Goel (70 Points)
Replied 22 September 2019

What do you mean by kaccha bill.. one kacha bill in cash that is abviously paid in cash and if it is giving ur particular name than u can pay it from ur bank seving bank. but liability arise for party at time of assessment why they issue without tax(kacha bill). it may be unregistered party. but if they are registered than they can not issue kacha bill

sabyasachi mukherjee (26053 Points)
Replied 22 September 2019

Thats the point if they issue the bill and does not raise a liability then .
untegistered party .
reverse charge will apply.

Rajnish Goel (70 Points)
Replied 22 September 2019

Reverse charge depends on bill nature..
like if it is freight or professional fee to advocate etc than applicable.. but if u r purchasing something that no reverse charge applicable..

Kapadia Pravin (17249 Points)
Replied 22 September 2019

@ Ghanshyam
In addition to my above reply -

Pay by Account Payee Cheque

Your query gets answered.
For what purpose such payment you are making is not known.

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