Cash payment morethan rs.20,000/- against different invoices
This query is : Resolved
17 November 2011
Dear Experts,
I am aware that payment of expenses in cash more than Rs.20,000/- to a single party in a single day will be disallowed u/s 40(4)(3) of Income Tax Act, 1964.
Please let me know, whether it is applicable if paid against different invoices.
For Ex: - ABC Ltd. raised 3 bills of expenses nature for Rs.15,000/-, 18,000/- & 16,000/- Dated 17/11/2011. All the bills were paid by creating different cash payment vouchers Dated 17/11/2011. Will the expenses be allowed or disallowed?
Thanks in Advance.
I am aware that payment of expenses in cash more than Rs.20,000/- to a single party in a single day will be disallowed u/s 40(4)(3) of Income Tax Act, 1964.
Please let me know, whether it is applicable if paid against different invoices.
For Ex: - ABC Ltd. raised 3 bills of expenses nature for Rs.15,000/-, 18,000/- & 16,000/- Dated 17/11/2011. All the bills were paid by creating different cash payment vouchers Dated 17/11/2011. Will the expenses be allowed or disallowed?
Thanks in Advance.
17 November 2011
Dear Sidhardh,
it will also come in preview of section 40(4)(3) . If customer take a cash than it will disallowed.
it will also come in preview of section 40(4)(3) . If customer take a cash than it will disallowed.
18 November 2011
Since the aggregate payment per day exceeded the limit, disallowance under section 40A(3) of the IT Act,1961 attracts.
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