Akash (CA Final (2nd Group Pending)) (876 Points)
29 January 2014The company is logistics company. It has work at different locations for transportation. If Company gives money to Employees for hiring Transporters transfers through NEFT and Employee hires Transporters i.e. Truck in pays in cash.Cash is over 50000,100000 or as the case may be..Please confirm will the amount disallowed.
Umesh Rijal
(Internal Auditor)
(909 Points)
Replied 29 January 2014
Yes the amount will be disallowed because they are not directly paying to the contractors, finally contractors are getting money in cash that's why the same will be disallowed.
Akash
(CA Final (2nd Group Pending))
(876 Points)
Replied 29 January 2014
At the time of payment , staff advance is debited and when bills are recieved expenses are booked.Now my question company is not paying cash directly to transporters.Everytime new truck is hired.How can it be disallowed?
CAclubindia
