Cash sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2013 sir,

i am proprietor of company what is maximum limit for cash sales in whole year for company and partnership company

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

04 March 2013 There is no limit for cash sales as per IT act and other acts. However it will be depend on the terms and conditions of the partnership deed and for company on Articles of association and Memorandum of association. In case in such agreements if any restruction on cash sales then subject to that condition.
However as per Income tax act there is condition to make cash purchase u/s40A(3) according to this section if cash purchases is made by more than Rs.20000 for a single invoice it will be disallow for the tax purpose at the time of computation of taxable income.

OM SAI SRI SAI JAI JAI SAI

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now