how should we verify whether payment has been made by A/c payee cheque or crossed draft when party name is not mentioned in the bank statement.
how should we verify whether payment has been made by A/c payee cheque or crossed draft when party name is not mentioned in the bank statement.
you cannot check if the cheque is an account payee cheque or not. However in the Bank Statement it is stated as 'By Clearing' this means that the cheque is being crossed.
As per the Tax Audit guidance note issued by ICAI, a coment is required to given in the Tax Audit Report as follows:
It is not possible for me/us to verify whether the payment is being made by account payee cheque/draft, as the necessary evidence is not in the possession of the assessee.
Agree Wid Mr. Grirdhar
however i m giving here a link which may more clear...ur doubt
See.
Page No 10-11-12
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
