18 November 2010
As per audit rule you should submit bills for each and every cash payment. if you dont have a bills by the time of auditing, auditor will disallow those things immediately. so, you better to print a bill book. which looks like issued by contract person or association to avoid 30% tax on your income and you should careful by preparing payment vouchers. bcoz, payment voucher should not exceed Rs. 20000/- as single payment and please watch the billing amount does not exceed Rs. 75000/- for this financial year. bcoz, you need to deduct TDS for such a contract type of payment made by you @ 2% or 1%.
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