Cash payment

This query is : Resolved

Raj Kumar G S (Querist)
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07 July 2012 Dear Sir,

I would like to know that the cash limit of a supplier is to what extent a company can pay in a financial year for a job work & supplier

Job work cash limit per anum paying below 20000/- per day

Supplier cash limit per anum paying below 20000/- per day

Regards

Raj Kumar

CA Prashant Gupta

CA Prashant Gupta (Expert)
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07 July 2012 Dear Raj Kumar
40A(3) limit is not annually. this is for per day transaction. you can't pay any expense which exceed 20,000/- in a day. you must pay it by A/c Pay cheque.
35,000/- in case of payment made for hiring or leasing goods carriages.
every day you can pay 20,000/- full year. NO problem in that.
Same sec applicable on Job work and supplier no diff.