Very urgent

manik (ca in practice) (420 Points)

08 August 2011  

our's is construction co. , we have many contractors working for us and on some of the sites the contractors are common. as per the company policy ,payments are given to contractors in cash on 7th of every month at each site separately. my question is there are cases in which similar contractor is receiving payment in cash at different sites for respective work done on that site . will it will attract dis-allowance u/s 40A (3)? what is the remedy for it?