Cash receipt in a single day

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This discussion clarifies the daily cash receipt limit for wholesalers against a single invoice, which is up to £1,99,999. It also addresses the tax implications of making business payments exceeding £10,000 in a single day to one person. While the payer may face disallowance for the expenditure, the recipient's books are generally unaffected by this specific rule.

MANIKA GUPTA

MANIKA GUPTA (Querist)

09 April 2020 How much cash can be received by a whole seller in a single day against a single invoice?
Further I want to know if payment made for business expenditure of more than 10000 in a single day to a single person, it disallowed to person who made it but who received the payment, what will be the impact in his book?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 April 2020 1 Rs 1,99,999 can be received in cash against single invoice in a day.
2 Recipt more than 10,000 no problem.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)

09 April 2020 Yes, you can receive upto Rs. 1,99,999 in a single day against a single invoice.
Rs. 10,000 will be disallowed in case of the person who is making the payment

MANIKA GUPTA

MANIKA GUPTA (Querist)

09 April 2020 Thank you sir
It has been a matter of doubt to me since I have read sec 40A(3)

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