stupid client or stupid me

Archit Jain (Practicing CA) (93 Points)

07 February 2009  

 

A Client of ours has received a bill of Rs. 60000 he is making payment in cash. In the books of A/C   he is showing it as three different payments made on say 1.1.2009 , 2.1.2009 & 3.1.2009. On 2.1.2009 he has received another bill from the party of say 20000 he is making the payment of same on 2.1.2009. if u notice that on 2.1.2009 the aggregate payment is in excess of 20000. Earlier it was allowed , but as per amendment made in sec 40A(3) it now is disallowed. The staff of client argues that the provision is just for a single bill , in my opinion he is wrong as the act clearly says that aggregate payment in cash in excess of 20000 is disallowed.