28 May 2012
suppose a single party given more than one bill for same expenditure in same date which exceeds the limit in aggrigate. can we treat it as a different expenditure and make cash payment above limit ?
28 May 2012
section 40A(3) applies to payment made to a party at one time and not to the aggregate of the payments made to a party in the course of the day as recorded in the cash book.According to the judicial opinion, the words used are ‘in a sum’, i.e., single sum.Therefore, irrespective of any number of transactions, where the amount does not exceed the prescribed amount in each transaction,the rigours of section 40A(3) will not apply.
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