I want to know whether there would be any problem from income tax angle if my cash sales are high. Thus most of sales are made through Cash Memo without seeking identity of purchaser.
No specific disallowance or prohibition is there under income tax for this. Though it would be difficult to justify the pricing of goods before AO.
19 June 2010
I dont think there is any problem with the cash sales under Income Tax Act. There are many businesses which have lot of cash sales but the important thing is that you should maintain proper records of cash sales.
CAclubindia
