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Q. > Please Help: Cash Payments to Transporters
whether 20000 provisions now applicable on transporters whether we can make payment more then 20000 in cash to transporters
answered Sep 12, 2011 by Ashish Karundia , New Delhi
Dear Vandana,
Payments to transporter can be made in cash of more than Rs. 20,000 but upto Rs. 35,000 and the same would not be disallowed u/s 40A(3). In this regard, you can refer Second Proviso to Section 40A(3A)wherein the limit of Rs. 20,000 was increased to Rs. 35,000 w.e.f. 01.10.2009.
Hope this suffice your query.
answered Mar 03, 2012 by Ketan Samdani , V V Nagar
The limit for transporters is Rs. 35000
CA Sansaar

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