An organization has some contractors working along with some employees. The organization wants to pay the contractors their salary by cash and that salary come in lakhs. What are the various consequences the contractors face for taking the money in cash in lakhs from organization?
8 Replies
SOHAN LAL
(Manger Accounts & Finance)
(363 Points)
Replied 29 February 2020
This expenses disallowed in Income tax.
Abhishek M
(not)
(68 Points)
Replied 29 February 2020
Hi Sohan
It is not answering my query that what various negative consequences a contractor can face like penalties, imprisonment etc for receiving payment in lakhs from the organization. So please reply that. Your current reply is not completely answering that.
Thanks,
SOHAN LAL
(Manger Accounts & Finance)
(363 Points)
Replied 29 February 2020
If contractor Invoice value below 200000 than Contractor to be receive upto 200000 in cash against our services services.
Abhishek M
(not)
(68 Points)
Replied 29 February 2020
Is it that a contractor can receive Rs. 200000 per day from the organization and the contractor will not face any negative consequence like fines imposed, imprisonment etc for that?
SOHAN LAL
(Manger Accounts & Finance)
(363 Points)
Replied 29 February 2020
PROVISION OF SECTION 269ST:
No person shall receive an amount of two lakh rupees or more—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person
No person shall receive an amount of two lakh rupees or more—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person
Abhishek M
(not)
(68 Points)
Replied 02 March 2020
Does it mean that under section 269ST a contractor can receive RS. 200000 per day from the organization and the contractor will not face any negative consequence like fines imposed, imprisonment etc for that?
the organization and the
Read more at: https://www.caclubindia.com/forum/organization-paying-contractors-in-cash-543710.asp
Read more at: https://www.caclubindia.com/forum/organization-paying-contractors-in-cash-543710.asp
the organization and the
Read more at: https://www.caclubindia.com/forum/organization-paying-contractors-in-cash-543710.asp
Read more at: https://www.caclubindia.com/forum/organization-paying-contractors-in-cash-543710.asp
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