Hello,
Can a Pvt Ltd Company pay its audit fees to its CA in cash(if it is less than 20000)? Is there any kind of default or inconsistency in the same?
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 10 May 2012
There is no any kind of default.
CA jatin k Gohil
(CA Practice)
(95 Points)
Replied 10 May 2012
According to Income tax provision, If the amount is less than 20,000 than u can take fees in Cash
Akash Jain
(CA Final Student)
(261 Points)
Replied 10 May 2012
Provisions relaxed in case payment is below or equal to 20000.
Rahul Kumar Chowdhary
(CA)
(82 Points)
Replied 10 May 2012
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 12 May 2012
There is no legal provision which bans for receiving fees in cash. There is no legal implication as regards to the received of the money.
However, at the time of payment, there are restrictions under section 40A(3) of the Income Tax Act. According to the section, there is limit for payment in respect of expenditures per day Rs. 20,000.00 So in case the fees is less than Rs. 20000 then there is no problem as regards to the company also.
yashsr
(CA)
(2285 Points)
Replied 12 May 2012
Originally posted by : Amol Gopal Kabra (CA,CS,DISA) | ||
There is no legal provision which bans for receiving fees in cash. There is no legal implication as regards to the received of the money. However, at the time of payment, there are restrictions under section 40A(3) of the Income Tax Act. According to the section, there is limit for payment in respect of expenditures per day Rs. 20,000.00 So in case the fees is less than Rs. 20000 then there is no problem as regards to the company also. |
Even if it is say 25000, we can receive 19000 on one day and 6000 on the next day. Correct?
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 12 May 2012
Against a single bill, if the payment is paid in parts on different days, then the limit or Rs. 20000 applies per day and not for aggregate payment of different days.
SANJAY D. AKRUWALA
(XYS)
(22 Points)
Replied 18 June 2016
All are correct. Only one addition. There is no restriction on receiving fees of any amount in cash in single payment or in instalments. The issue will be to the payee. A single payment above 20000 will be disallowable u/s 40(A)(3).