Question ID :
39308
Cash payment in parts
A person purchases Goods valued 1 Lac from a supplier and is making payment in Rs 10000- each on different dates. whether this is permissable
Posted by
Mahesh Kumar
on
Jul 26, 2019
Filed Under
DIRECT TAXES
This is fine . The expenses is allowable under section 40A(3) up to Rs 10000/ per day
Posted by
CA. BISHT RAKESH on
Jul 27, 2019
Answer ID :
79064
If the value of a invoice is more than Rs.10,000/- then you cannot make the payment in cash even though the single payment is less than Rs. 10,000/-.
If such part payment is permitted then the very purpose of this section will be vitiated. Hence we cannot make the part payment in cash in the given case.
Kindly look into the relevant section before taking any call.
Posted by
Roop Kishore Aheer on
Jul 27, 2019