Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Cash Transactions limit

SUNIL GIDWANI (PRACTISE) (138 Points)

13 April 2017

Sir, if suppose i sold goods to Mr X for Rs. 50000 on cash every month and i m receiving cash so pls reply my transaction is violating the provisions of cash transactions limit which are applicable from 01/04/2017
My business is totally running on cash so pls reply......

Reply
Follow
Share

12 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160928 Points)
Replied 13 April 2017

No, provided non of bill and/or any receipt equals to 2 lakhs or more on any single day.

SUNIL GIDWANI (PRACTISE) (138 Points)
Replied 14 April 2017

Thank you sir
But suppose my cash turnover with Mr X during the year is 1500000 so it is ok in that transaction and i m not receiving cash above 200000 with Mr X during the year so is there any violation in that my transaction

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160928 Points)
Replied 14 April 2017

Section 269ST not attracted, but difficult to convince ITO for such a large cash volume with single party. The purchaser will be harrased for violating section 40A(3). Why don't both of them agree for banking mode? Tracking each and every transaction will be easy.

1 Like

SUNIL GIDWANI (PRACTISE) (138 Points)
Replied 14 April 2017

So how much i can do cash transaction with my parties in cash and pls give me brief guidance

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160928 Points)
Replied 14 April 2017

As I said earlier, you don't have any problem; but the retailer cannot purchase anything in cash for more than 10000/- per bill. So, let the purchaser guide you.

SUNIL GIDWANI (PRACTISE) (138 Points)
Replied 14 April 2017

Thak you sir now i m cleared

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160928 Points)
Replied 14 April 2017

My pleasure

1 Like

Krishna (Manager) (24 Points)
Replied 14 August 2017

Hai sir, thanks for your information. I have a doubt about computer repairs and services... I have sold system accessories to LTD. Company for Rs. 25000/-, the company asking me GST Bill, but my company doesn't have 20L turnover for 1year, I told them to pay by bank transfer and pay GST from ur company to Govt.. is it ok. Please suggest me sir.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160928 Points)
Replied 15 August 2017

@ Krishna: Yes, it is ok. You need not register under GST, unless your company cross the basic limit, or unless you supply interstate.

Also the buyer can pay the amount under RCM, but the same should not be deducted from your bill amount.

1 Like

IMRAN KHAN (accountant) (22 Points)
Replied 23 August 2017

Dear Sir,

Is that compulsory to get electorinc transfer on the GST charged invoices, i mean no cash is allowed to collect agaist GST invoices.

pls reply

ansari kamil (2 Points)
Replied 23 September 2017

DID I TAKE CASH MORE THAN 200000 IN A MONTH WITH DIFFRENT BILL BY A SINGLE PARTY WITH GSTIN BILL?

Arunachalam (Proprietor) (186 Points)
Replied 13 August 2018

If the buyer is allowed to purchase only for 10,000 in cash per day from a person, then how come the person who sells is allowed to collect up to 1,99,999 in cash from a person in a single day? How is this even possible?