Gurudas (Start-up) (36 Points)
15 March 2017
CA Janani
(ACA ACS DISA(ICAI))
(359 Points)
Replied 15 March 2017
There are some businesses belonging to unorganised sectors(Eg Labour oriented Job works).
So, an adhoc percentage of cash expenditure is not warranted by any act. If Income tax Act had any word on it, then many would start using it other way.
The income tax act clearly puts forward Section 40A(3)- Disallowances of expenses made without a/c payee cheques.
The cash payment made would be disallowed on the basis of each individual transaction and not on an adhoc basis.
Gurudas
(Start-up)
(36 Points)
Replied 15 March 2017
Thank you for your reply :-
(1) A more pin pointed question for the Auditors :- While working for your customer, what is the maximum percentage that you have allowed, with all documentation in place? Just put down numbers...
(2) For what reasons would cash vouchers be disqualified....Can we discuss different possible reasons...
Ramesh
(Student)
(90 Points)
Replied 15 March 2017
CASH PAYMENT IN EXCESS OF 20000 IS NOT ALLOWED...
Cash payment having less than 20000 on is allowed...
Gurudas
(Start-up)
(36 Points)
Replied 15 March 2017
Thank you Ramesh....That is one very good point....
What else could disqualify Cash Vouchers.
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