Mayur Nikul Upadhyay (Article) (74 Points)
20 December 2011I am doing Interim Audit of a company..
I wanted to know that if cash payment is done for Freight charges above Rs 20000 will it be allowed?will it be covered under Exception 6DD?
And Rs 35000 is it only for Transporters or to all?
Sakshi
(CS)
(41 Points)
Replied 20 December 2011
frieght payment not covered by rule 6DD.
Limit of Rs. 35000 applicable if this payment made to transporter for frieght otherwise limit is Rs. 20000
Saurabh Malpani
(CA Final)
(514 Points)
Replied 20 December 2011
no wxception 6dd wont be covered in the above
Mayur Nikul Upadhyay
(Article)
(74 Points)
Replied 20 December 2011
It means this payment will be disallowed u/s 40A 3??
What if this Freight Charges have been paid to Indian Railway??
will it still be disallowed?
aaditya
(articles)
(24 Points)
Replied 20 December 2011
PREETI SUMAN
(ca final)
(94 Points)
Replied 20 December 2011
no need to deduct if cash payment is more than 20,000.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 21 December 2011
Read sec 40 A(3) OF INCOME TAX ACT...
Rule 6DD FOR EXCEPTIONS....
Rs 35000 allowed to transporter not other...for other maxi Rs 20000 allowed.
CAclubindia
