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Hello All Seniors,
Request you all to please guide me on this topic.
We issued a self check of 25000/- and made the payment of full amount to a vendor.
As per rules this expenses will be disallowed cause it is more then 20000/-.
But,i would like to show this transaction valid and countable in records.
Seniors!Kindly guide me if their is any substitute way or any other solution to show this transaction in a manner that it can get countable in records.
Regards
Neha

Hi Neha, self cheque will be treated as cash payment. If the vendor is transporter, you can make payment upto 35000/- by cash as per sec.40A. pon
Pon, This office is into it IT services. So,Should i show this payment like a transport expenses on a office trip to any hill station. Is this valid and will count? Regards Neha
And one more thing...if the issue is same,And we have to show it in furniture head, then is there any solution to make it countable. Please guide me.
hi Neha,

read the rules.

Some of the Exceptions given in Rule 6DD of the I T Rule

No disallowance under sub-section (3) of section 40A shall be made where any payment in a sum exceeding twenty thousand, rupees is made otherwise than by a crossed cheque drawn on a bank or by crossed Bank Draft in the cases and circumstances specified hereunder, namely:-

(a) Where the payment is made to to Government and, under the rules framed by it, such payment is required to be made in legal tender;

(b) where the payment is made to bank for any purpose

(c) where the payment is made for the purchase of-

(i) agricultural or forest produce; or

(ii) the produce of animal husbandry (including hides and skins) or dairy or poultry farming; or

(iii) fish or fish products; or

(iv) the products of horticulture or agriculture,

to the cultivator, grower or producer of such articles, produce or products;

(d) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products;

(e) where the payment is made in a village or town, which on the date of such payment is not served by and bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town;

(f) where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike;

(g) Where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person;

Neha what are you doing some scandal worth crores like satyam,, mmmmmmmmmmmmm ,, anyways which rules you follow? GFR, or GAR or ur own rules
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