Applicability of 269st
This query is : Open
05 June 2017
is 269st (rs.2 lac cash transaction prohibition) applies to co-op society regd. under state co-op society Act on acceptance of deposits r lending loan to members? if yes, wats d solution to avoid penalty? thanks in adv. (reply wid circular/notification if any will b appreciated)
CA Shubhanshu Jain
(Expert)
05 June 2017
Yes 269ST is also applicable in this case
Section269ST starts as follows
No person shall receive an amount of two lakh rupees or more—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
So First of all definition starts with "No person" i.e each and every person is covered whether it is trust or company or society.
Secondly every transaction is covered whether it is capital in nature or revenue in nature.
So, above transaction is also covered under 269ST and only solution to save penalty is not to accept more than 2 lakhs in cash.
Section269ST starts as follows
No person shall receive an amount of two lakh rupees or more—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
So First of all definition starts with "No person" i.e each and every person is covered whether it is trust or company or society.
Secondly every transaction is covered whether it is capital in nature or revenue in nature.
So, above transaction is also covered under 269ST and only solution to save penalty is not to accept more than 2 lakhs in cash.
05 June 2017
but bank post office co-operative banks are exempted from this right
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