16 April 2010
There is a limit in the Income tax that payment of More than Rs.20000/- must be made through Bank.
If suppose the trader sell his product for Rs.50000/- and he wants the buyer to pay cash. Please tell the procedure and method to do the payment in this situtation. Shall we get the payment in Vouchers. Please reply.
01-05-10 Most of experts replied that it can be split. o.k. I accept. But the problem is , the buyer wont do this, At point of purchase, they may not have the cheque book, or they may not have the time to make the DD etc. So, i feel that the obligation put up on the buyer and sellers is wrong? Please reply.
16 April 2010
If your single bill is 50000 you cannot accept cash. The other alternate is get cash from your buyer. YOu purchase DD's of 25000 each from differnt banks and you bear the dd charge. This will solve your problem.
16 April 2010
Seller can sell goods in cash. But in buyer's hand puchases will be disallowed by virtue of the provisions of section 40A (3) of the Income tax Act,1961.
16 April 2010
you can pay 20000/- first day 20000/- second day and rest 10000/- 3rd day. because in one day you can't pay more than 20000/- to one person. second method as per rule 6DD you can pay him on Sunday i.e. bank holiday. but in case some time you have to explain that the payment was necessary on that day.
CAclubindia
