22 April 2011
Amt. paid in Cash above Rs. 20000 in a single day to a same party is disallowed wholly even if paid in different times during a same day. but, if amount is paid against more than one invoice or bill then? Eg. Mr A buys raw material from Mr. B for Rs 30000 and mr B issues 2 bills of Rs. 15k each for raw mat x and raw mat y. now?
22 April 2011
THE FINANCE 2008 HAS AMENDED SECTION 40A(3) AND NOW NO SPLITTING UP OF PAYMENTS IS ALLOWED. THE LIMIT IS PAYMENT TO A SINGLE PARTY IN A DAY SHALL NOT EXCEED THE AMOUNT OF RS 20000
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