cash audit basic taxable norms?
sandeep chaudhari (Service) (45 Points)
27 December 2008
Pls help me the Cash audit points as per tax norms
sandeep chaudhari (Service) (45 Points)
27 December 2008
Binod Prasad
(Student CA Final )
(44 Points)
Replied 27 December 2008
First of all see that any payment of expenses which are suppose to be debited to P/L A/c. should not be more than Rs. 20,000 at once. Further see that all the cash payments should be authorised by the concerned authorised signatory. These are towards Expenses side. So far as income side always see that all the payments received should be entered inthe cash book.
CA. Rajeev Aggarwal
(Chartered Accountant)
(3424 Points)
Replied 27 December 2008
As a good business practice, any company should deal all its transactions through bank only.
Very limited transactions should be done through cash.
Hence all cash voucher must be supported by a valid reason.
And yes there should not be payment of more than Rs.20000
CA. Abhishek Bansal
(Research Analyst)
(64 Points)
Replied 30 December 2008
Please also ensure that cash balance in the books tallies with physical cash-in-hand and also that books do not show negative cash balance at any given day.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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