Cash Payment for new car purchase

This query is : Resolved 

19 October 2010 Is it allowed to pay in cash a sum of nearly 2-2.5 lacs as down payment to a car dealer by a firm?

19 October 2010 Income tax act not allows any payment more Rs.20000/- by cash

19 October 2010 Yes can pay by giving PAN NO.


19 October 2010 If the firm who is paying cash is not a car dealer, there is no harm in paying the down payment in cash.

20 October 2010 There is no disallowance for payments related to capital expenditure in Income tax so you can make payment in cash or to avoid complications u can get Cash DD and pay it to dealer.

20 October 2010 Agreed with sidharth

20 October 2010 Agree with Sidharth view.

20 October 2010 To clarify the assesse is not a car dealer means it is capital expenditure for him and ceiling of cash payment for more than Rs. 20000 is not applicable in this case.

Regards
K.L.Paliwal





You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries