Let us suppose we call 3 trucks for a day for material dispatch.
Now we have to give freight advance in cash to all truck drivers. The balance freight is not paid by us but by buyer of our goods.
Now the truck owners could individually own their trucks or all belong to a single transport company! In this scenario how much will be cash limit per truck driver?
So even if all 3 trucks are owned by same truck company we can pay 35k-35k cash advance to each driver?
nobody knows on this topic?
As talked above, in the case of 3 trucks owned by same truck company:
We are giving 35k cash advance to each truck drivers, but the truck drivers are employees of the truck company. They would be just collecting advance money on behalf of truck company for fuel, food etc during the journey.
How can I put entry in the name of 3 employees of a company when they are just collecting it on behalf of the company?
Actually what happens is we never enquire about the ownership of trucks since we just ask transport agency to get us trucks.
Also because we just have to pay 10-20k cash advance and balance freight is paid by buyer of our goods.
And we pass these cash advance voucher entries in the name of individual truck numbers.
Is this practise correct?
I mean even if a IT scrutiny comes, they are not gonna match truck ownership of so many trucks and if they cross cash limits.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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