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Payment in cash

sanjeevmehra (individual) (51 Points)

18 June 2011

in the case of payment against food grain can we pay cash and second q is can we pay cash after 2-3 months also

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2 Replies

Pankaj Arora (Job) (150 Points)
Replied 18 June 2011

Yes cash payments after 2-3 months does not attract any voilation and as far as making payments in cash is concerned if payment is made to farmers who does not have any bank account or payment is to be made where there is no bank or payment is to be made on a bank holiday, then only payment in cash is allowed.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 18 June 2011

cash payment is allowed on spot purchase, but if creditors are generated in accounts, then supporting documents needed for not making payment other than cash.