Payment to directors in cash

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gautam (Querist)
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24 January 2013 a newly formed pvt. co. was not having a bank a/c, it wants to pay each director rs.25000 in cash per month, can it do so by giving the amount in two times like once 10000 and on another date 15000. so that that law of not paying for a expense more than 20000 in cash does'nt gets voilated.

CA. Pankaj Mittal

CA. Pankaj Mittal (Expert)
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25 January 2013 It is better to open bank account in name of company as early as possible and make big payments through cheque only as it is safe and better evidence of payment. In cash payments exceeding Rs. 5000 revenue stamp with receivers signature should be there.