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Cash transaction

202 views 3 replies

Mukesh Punj

Profession with E-taxtation Accounts V

29 Points Joined June 2009

I HAVE MADE A PAYMENT OF MEDICAL BILL IN FORTIS HOSPITAL THRU MY CREDIT CARD. TOTAL BILL AMOUNT WAS RS. 4LAC OUT OF WHICH RS. 3.40 LACS WAS PAID BY INSURANCE COMPANY AND 60 THOUSAND BY ME THRU MY CREDIT CARD AND HOSPITAL HAS DEDUCTED 1% TCS ON MY CREDIT CARD PAYMENT. NOW MY QUESTION IS : 1. IS PAYMENT BY CREDIT CARD IS CONSIDERED AS CASH PAYMENT OR NOT 2. IS YES THAN ALL PAYMENTS BY CREDIT CARD ARE CONSIDERED AS CASH TRANSACTION, IF NOT, THAN WHAT TYPE OF TRANSACTIONS ARE CONSIDERED AS CASH TRANSACTIONS THRU CREDIT CARD

Replies (3)

CA Harshal Totla

Chartered Accountant

2229 Points Joined May 2014

TCS needs to be deducted @ 1% only when cash payment in a transaction exceeds Rs.2 Lacs. Payment via credit card cannot be equated with cash transaction there is no such notification/clarification by ITD. This act by hospital seems to be unjustified.