Hello i have withdrawn 600000 cash from my current account.i am constructing a builiding for school.how to show labour payment in account.and what is the amount i can pay to labour.i have paid 3 lacs to labour.pls tell me what to i do to show it in tally
pls tell me how to show it in tally.will i will in trouble?
Please let us know, if the amount is paid to different labours or its a consolidated payment to one contractor. If it's a consolidated payment then you may face troubles but if it's a payment to different persons and each payment/invoice does not exceed 20000 a day and you have sufficient documents to prove the same then you need not to worry.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Entry can be as follows
1. Cash account debit to bank account
2. Labour/wages account debit to cash
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
it is payment to different labour.what document should i need to show the payment?should i get a paper sign form them.pls tell me what documnets should i need.and i have done 3 lacs in total in 3 months time.
Yeah, you should get the receipts signed form each of them or any similar document.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
You have to show labour exp as direct labour charges in tally
For documentation maintain signed vouchers as proof and whenever you made final payment mention the same on last payment voucher as full and final
Dear Sir,
please note following :
- As per the latest rule applicable from DEcember,2016 if you are a company or any other concern than you can not make any labour payment in cash. Also as per income tax rules you can not pay more than Rs. 20,000/- in cash to any person in a day otherwise it disallowed.
- So you need to break the entries in different part with different name, maintain its receipts and bills and than you can claim the same under income tax without much of issue.
Hello Sir,
Proving labour expenses made to Labourers in cash is a difficult task. It is advisible to refrain from such transactions and preferably make a cheque payment to your labour contractor and ask him to withdraw and make the payment to individual labourer.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Sir you need to prepare vouchers and get the same signed by the labours. Other than that no need to worry
Get vouchers signed by the labourers and keep a copy of their PAN card for your reference. The payment to each labourer should be less than Rs. 10,000 per day. In future please avoid cash payments since it gets difficult to prove such payments.
