ONE MY CLIENT RELATED TO THE CONTRACTUAL BUSINESS

Dear Sugata,

U can give a thought at Rule 6DD - It list out the exceptions i:e where payment in excess of Rs. 20,000 can be made otherwise then by an "acc*nt payee cheque/draft"

If ur case falls in one of those cases then nothing like it otherwise you have to make sure that payment in a day should not exceed Rs 20 k

If your client is suppling and receipt is in cash where is the question of disallowance?

Dear Bimal Sir,

U R rite that if receipts in cash exceeds Rs. 20K, then there is no problem...But I think it is understood that the question is in respect of payments..

payment made to a person who ordinarily resides or carry on business in a village not served by bank is allowable expenditure under rule6dd(g).if the payment is made in a town having banking facilities to a villager whose village has no bank ,this exemption is  not allowed.

Dear Amir sir,

I have no doubt about your suggestion, I have written what I understood from the question.

The question needs some detail about actual querry. Because in question, his/her client is in supply of dumper on contractual basis in rural area and queriest has not mention  anywere about payment.