Cash payment of rs.20000
This query is : Resolved
08 August 2011
our's is construction co. , we have many contractors working for us and on some of the sites the contractors are common. as per the company policy ,payments are given to contractors in cash on 7th of every month at each site separately. my question is there are cases in which similar contractor is receiving payment in cash at different sites for respective work done on that site . will it will attract dis-allowance u/s 40A
(3)? what is the remedy for it?
(3)? what is the remedy for it?
08 August 2011
Dear Manik,
As per my view, if the payment made to contractor against different bills/invoices which are less than Rs.20K, then section 40(A)(3) will not attract but if payment has made for single work, no matter if payment made at different sites, but if it exceeds Rs.20K, then section 40(A)(3) will attract.
Remedy is you can make payment on different dates below Rs.20K
As per my view, if the payment made to contractor against different bills/invoices which are less than Rs.20K, then section 40(A)(3) will not attract but if payment has made for single work, no matter if payment made at different sites, but if it exceeds Rs.20K, then section 40(A)(3) will attract.
Remedy is you can make payment on different dates below Rs.20K
08 August 2011
as the same contractor is working at different sites and is submitting different bills for each site which might be of more or less of rs 20000.then what will be the consequences
10 August 2011
Hi,
In that case you cann't pay more than Rs.20K against each bill each day. You will have to pay on different dates.
In that case you cann't pay more than Rs.20K against each bill each day. You will have to pay on different dates.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
