Dear Friends,
Kindly suggest me if any accounting rule is there which prohibits the payment of a purchase of goods or services by Cash. I read IT rule 40A but that refers to deduction under IT Act, here there is no deduction involved just we are making payment for procuring services /product from Vendor. So any accounting rule is there which tells that amounts above XXXX should be paid in cheque / dd/ electronic clearance only? Or whether the payment depends on company company policy.
Hope you got my query?
CAclubindia
