Can advance amount be paid in cash in excess of Rs. 20000 ( say revenue or capital expenditure to be incurred in future) ?
Somaas Kandan
(CA Final)
(385 Points)
Replied 30 June 2011
No, Advance payment also not to be made more than Rs. 20000 in cash for Revenue expenditure. And even if it for capital expenditure like Depreciable assets should not be made.
But it can be made for Non depreciable assets.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 01 July 2011
YES ADVANCE PAYMENT ABOVE 20000 IS ALSO DISALLOWED
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
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