If any payment is made in cash to agriculturist for purchasing the agriculture produce exceeding Rs. 20,000/-, does it attracts Section 40A(3). Suppose, the assessee buys agriculture goods on behalf of a limited company and pays to the agriculturist in cash, gets his payment from limited company by cheque alongwith his commission, does the payment made to the agriculturist in cash exceeding Rs. 20,000/- gets disallowed.
29 July 2012
Payment can be made in Cash exceeding Rs. 20000/- for purchase of agricultural produce provided the payment is made directly to the cultivator, grower or producer of such agricultural produce.
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