Demonetisation of 500 & 1000 notes

This query is : Resolved

Bhavna (Querist)
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10 November 2016 My dad has a business dealership based entirely on credit. now with the demonetisation, all the retail suppliers have purchased the goods and deposited cash totalling to a crore altogether. what is the procedure to deposit it in the bank? VAT input is applicable on the product which is being paid duly.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 November 2016 There should not be any problem in depositing the regular business receipts in banks evidenced by invoices.

Bhavna

Bhavna (Querist)
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10 November 2016 yes it is fully evidenced by invoices, and it will daily be sent through an RTGS to the company. So, what is the limit of depositing in the banks? 10 lacs depositing daily will not cause any suspicion?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 November 2016 Remittance through RTGS is direct remittance to the banks no cash involved. Remitting cash above 2.50 lacs in a day or in many days in an account will be inquired and 200% penalty will be levied in case of no proper evidence shown.
Depositing daily 10 lacs will definitly cause suspicion.

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