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Limit of cash payment to transporters from 1st april, 2017

durgaprasad (accounts executive) (225 Points)

01 April 2017

The limit of cash payment is Rs.10,000/- from april 1st, 2017 onwards and it is applicable for transporters payment or existing limit of Rs.35,000/- applicable for transporters or not

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43 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 01 April 2017

In order to disincentive cash transactions, it is proposed in the budget w.e.f. AY 2018-19(FY 2017-18) to amend the provision of Section 40A of the Act to provide the following:

i. To reduce the existing threshold of cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e any payment in cash above ten thousand rupees to a person in a day, shall not be allowed as deduction in computation of income from “Profits and gains of business or profession”........................................

As nothing has been specified for in the case of payments made for plying, hiring or leasing goods carriages limit is 35000/- ; It seems it remains unaffected

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durgaprasad (accounts executive) (225 Points)
Replied 03 April 2017

I just confusion about the payment to transports limit. It's not mentioned in the section. I think what did you suggest sir, it will not be affected for the transporters limit. Thank you very much sir, such a nice response.

Haider Hasan (2 Points)
Replied 03 May 2017

PAYMENT LIMIT FOR TRANSPORTER F.Y.2017-2018

Anu Verma (Sr.Consultant) (87 Points)
Replied 17 May 2017

DEar Mr. Dhirajlal,

Can we pay salary in cash w.e.f 01-apr-17. If yes , what is the maximum limits.

Thanks

Anu Verma

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 17 May 2017

"Can we pay salary in cash w.e.f 01-apr-17. If yes , what is the maximum limits."

As such cash expenditure per day per person should not exceed Rs.10,000/- or is disallowed. & some employers are in habit of breaking the salary component on different dates!!! But its advisable to stop such practice for permanent employees, as ITO may disallow such disintegeration. (As per IT act, 1961)

Thats why Government had passed an ordinance in December 2016, which then passed in partliament as bill in February 2017 known as The Payment of Wages (Amendment) Bill 2017; seeking to enable the Centre and state governments to specify industrial units which will have to pay wages only through cheques or by transferring money into bank accounts. ( As per labour act)

By making state-level amendments to the Act, Andhra Pradesh, Uttarakhand, Punjab, Rajasthan, Kerala and Haryana have already made provisions for payment of wages through cheque and electronic transfer.

So, any salary of Rs.10,000/- and above must be paid by non-cash transaction mode.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 17 May 2017

@ Haider Hasan: For cash payment limit to transporter per day remains same as Rs. 35,000/-

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 18 May 2017

Most welcome

Mary Gopalakrishnan (Senior Accounts Officer) (22 Points)
Replied 23 June 2017

Dear Sir, I made a cash payment of Rs.13000/- to internet service provider. would this be disallowed under this limit?

Deepak Kuamr (Accountant) (26 Points)
Replied 19 July 2017

DEAR SIR

PLEASE HELP US

I HAVE CONFUSE PLEASE TELL USE THAN TRANPORT IS NOT ANY LORRY BUT ONLY SERVICES PROVIDER THAN TDS IS APPLICABLE YES OR NOT

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 19 July 2017

Originally posted by : Deepak Kuamr
	DEAR SIR PLEASE HELP US I HAVE CONFUSE PLEASE TELL USE THAN TRANPORT IS NOT ANY LORRY BUT ONLY SERVICES PROVIDER THAN TDS IS APPLICABLE YES OR NOT

Your query cannot be answered because of insufficient data........

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 19 July 2017

Originally posted by : Mary Gopalakrishnan
	Dear Sir, I made a cash payment of Rs.13000/- to internet service provider. would this be disallowed under this limit?

Well, two different bills of different periods may be allowed......

1 Like

Dinesh Goyal (Director) (22 Points)
Replied 15 August 2017

DEAR SIR,

We have in mining business and we have to purchase deasel for machines & dumpers, would you please provide me that can I bought deasel in cash worth of Rs. 30000 - 40000 per day.

Thanks

Dinesh Goyal