Cash payment limit u/s 40

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2015 Hello sir

I am in a trading business. When I purchase goods i have to pay freight of Approx. 80000/- in cash to the truck driver when he gives me Builty.
Please suggest me what are the maximum limit upto which i can pay in cash without attracting any disallowance and applicablity of any TDS provision on it.

please provide practical solution.

THANKS

CA Kanj Goel

CA Kanj Goel (Expert)
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07 April 2015 Bifurcate the amount in 4 tranches none should exceed 30000 if you have the pan no. Then no of transporter then need not deduct tds.

CA SANDESH MAHIPAL

CA SANDESH MAHIPAL (Expert)
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09 April 2015 Sir would you please explain why less than 30000 ?

Thanku

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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11 April 2015 For transporters maximum amount which can be paid in cash without attracting disallowance u/s 40A(3)is Rs. 35000/-.

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Cash payment limit u/s 40

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