Dear all,
One of my friend is running a sole proprietorship firm.
Actually he wants to make jagran on ocassion of Navratri.
He wants to know can he pay Rs150000/- in cash for booking amount to jagran party form his firm or huf.
Thanks
jagran has nothing to do with your friend's business.
it is not a business expenses. so it will be of personal nature.
nd treated as drawing.
if jagran is for workers or for business promotion or any purpose than only it will be a business expeses.
and moreover if you are making expense in respect of business then you cannot pay them in cash above 10000 as per amendment in income tax act by Finanace Act 2017.
so you have to pay this amount through bank.
CAclubindia
