One of the common question that we get from clients is โ
"๐๐๐ฌ๐ก ๐ฉ๐๐ฒ๐ฆ๐๐ง๐ญ ๐๐ฅ๐ฅ๐จ๐ฐ๐๐ ๐ข๐ง ๐๐๐?"
If yes, what is the limit of Cash Payment?
So the answer is that there is ๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐๐ ๐ช๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐ช๐๐๐ ๐๐๐๐๐๐๐๐.
๐๐ฐ๐จ ๐ค๐๐ฒ ๐๐จ๐ง๐๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ญ๐ก๐๐ญ ๐ฆ๐ฎ๐ฌ๐ญ ๐๐ ๐๐ฎ๐ฅ๐๐ข๐ฅ๐ฅ๐๐:
1๏ธโฃ Expense must be ๐๐๐๐๐๐ & ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐
๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐.
2๏ธโฃ It must be supported by ๐๐๐๐๐๐ ๐
๐๐๐๐๐๐๐๐๐๐๐๐ (invoice, receipt etc.)
Even though cash payments are legally allowed, large or frequent cash transactions may attract scrutiny under ๐ผ๐จ๐ฌโ๐ ๐จ๐๐๐-๐ด๐๐๐๐ ๐ณ๐๐๐๐
๐๐๐๐๐ (๐จ๐ด๐ณ) regulations, especially if:
๐ธ The amounts are unusually high, or
๐งพ There is no proper trail or documentation.
๐ฆ Practically, most corporates and free zone entities prefer ๐๐๐๐ ๐๐๐๐๐๐๐๐๐ for transparency and audit trail.
Further, large cash payments may be questioned during ๐๐๐ ๐๐๐
๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐.
Vidhu Duggal & Company
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