Whether The limit of Rs.35,000/- for payment in cash made for plying and hiring trucks also apply to loading and unloading chagres billed together with hiring charge. Moreover whether the payment made at the end of month for different bills raised during the month can be made in cash exceeding Rs.35000/- at one time.
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Sec. 40a(3) expenses in cash above rs.20,000/-
Replies (2)
Yes the payment made at the end of month for different bills raised during the month can be made in cash exceeding Rs.35000/- at one time.
Section 40A(3) is not attracted in this case because for the applicability of the section the expenditure as well as the payment should exceed Rs.20,000/- or Rs.35,000/- (in case of transporter)
In case of Transporter, the cash payment to a person in respect of an expenditure should not exceed Rs.35000/- per day. Limit of Rs.35,000 should be seen per day.
In my view in case of loading and unloading charges billed together with hiring charges limit of Rs.35,000 will be applicable.
Yes, composite bill amount should be considered for Rs 35,000/- limit.
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