Payment made to contractor

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Kumar Gaurav

Kumar Gaurav (Querist)
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24 February 2015 dear all payment made to contractor for rs. 50000 in cash is allowable or not? its urgent pls. thanks

vignesh

vignesh (Expert)
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24 February 2015 Dear Kumar, Greetings, Good Evening
if the payment is made to the contractor on the same day as a payment for 1 bill raised of Rs 50000, then it will attract the provision of 40A(3) and would be disallowed
If it is paid on different dates with none of the payment exceeding Rs 20000, then it would be allowed.
but do remember T.D.S would attract if any of the bills is more than 30000Rs
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