Please Help: Cash Payments to Transporters
Posted Date : 12-Sep-2011 , 11:57:10 am | Posted By Vandana
whether 20000 provisions now applicable on transporters whether we can make payment more then 20000 in cash to transporters
Category : Income Tax | Answers : 2 | Comments : 0 | Hits : 2724
Answers
Answer By: Ashish Karundia
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.
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.
Answer By: Ketan Samdani
The limit for transporters is Rs. 35000
Comments