ACORDING TO SECTION 43B OF IT ACT AND RULE 6DD OF IT RULES, CASH PAYMENT ABOVE 20,000 IS DISALLOWED.
WHAT IS THE LIMIT FOR CASH PAYMENT FOR FREIGHT ,ETC. IN CASE OF TRANSPORTERS.
IF THERE IS ANY SUCH NOTIFICATION, WHEN SUCH IS APPLICABLE FROM?
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WHAT IS THE LIMIT FOR CASH PAYMENTS IN CASE OF TRANSPORTERS?
Replies (13)
HI.
In the Current Budget the FM has increase the payment limit to Rs. 35000 for the Freight and payment to Transporation Services.
transactions effected on or after October 1, 2009
Yes CA Amit Goyal is right,
Hai,
In the new budget freight comes under tds or not and it comes what is the percentageof dedection of tds
Regards
Kariyappa
Hi Kariyappa
As i understand from the budget now the freight is not cover under sec 194C hence there will be no TDS if the transporter provide the PAN No. and further there is one more requirment has been added that the Company who has made the payment to transporter will submit the details to income tax department that contain the transporter name and total amount of payment made to that party.
Regards,
CA Amit Goyal
An exception is introduced in section 40(3), the limit is increased to Rs. 35000 in case of payment for plying hire or leasing of goods or carriage.
Transportors who furnish their PAN nos. would not be subject to TDS w.e.f. 1/10/2009.
WHAT IS THE NOTIFICATION No. OF NOT DEDUCTING TDS ON TRANSPORTERS?
AND WHAT IS PROCEDURE OF SUBMITTING THE THE DETAILS OF THE SAME TO TH INCOME TAX DEPARTMENT?
In case of Transporters Cash upto 35000/- can be made.
Amendment of section 40A.
In section 40A of the Income-tax Act, in sub-section (3A), after the proviso, the following proviso shall be inserted with effect from the 1st day of October, 2009, namely :
Provided further that in the case of payment made for plying, hiring or leasing goods carriages, the provisions of sub-sections (3) and (3A) shall have effect as if for the words twenty thousand rupees, the words thirty-five thousand rupees had been substituted..
Firstly Nikunj...cash payment of more than Rs. 35,000/- (amended) is disallowed under sec 40(A)(3)...
Secondly now no need to deduct TDS on transporters bills...
Thirdly the cash payment has been enhanced to Rs. 35000/-...
W.E.F. 1ST OCT 2009 RS 35000/- CAN BE MADE IN CASH FOR TRANSPORTERS
in july -2009 budget finance minister announced that for all the assessee limit is 20000/- but for the transporters limit is 35000/-
Rs 35000
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