19 August 2014
I AM auditing a company they paid 150000 in cash to government as octroi expense for some project. IS this a valid payment?? IF yes, please tell me rules for such payment.
20 August 2014
As far as my information goes, there is no act which restricts cash payments. Cash payments can be restricted by internal policy of the company. As regards Income Tax Act goes, the limit set by S-40A(3) for cash expenses is not applicable for statutory payments.
20 August 2014
But there has to be a valid receipt to establish that the payment is indeed paid to the local Octroi authorities. Also, the calculation of payment needs to be verified to be doubly sure that the payment made is correct.
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