How much amount pay in cash to wholeseller

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monika

monika (Querist)
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25 April 2017 HOW MUCH AMOUNT RETAILER CAN PAY TO WHOLESELLER AGAINST ONE BILL IN CASH ?

Mohan Babu.L

Mohan Babu.L (Expert)
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25 April 2017 The cash payments to a particular person / a party has been limited or reduced to Rs 10000 from 20000 for cash expenses u/s 40A(3)..

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monika

monika (Querist)
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25 April 2017 I ASKED ABOUT BILL OF GOODS PURCHASE NOT ANY EXPENCES ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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25 April 2017 Retailer should pay less than Rs 200000/- in respect of single bill to wholesaler otherwise wholesaler will invite penalty. In other words the single bill shall not be of Rs 2 Lakhs or more. As for the retailer cash purchases would also amount to expenses as per a supreme court judgment so if retailer is claiming purchase as expenses in return such as in the case of audited return u/s 44AB then cash limit is Rs 10000/- as per section 40A(3).

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monika

monika (Querist)
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27 April 2017 IF ANY ASESEE WHO ARE NOT AUDITED U/S 44AB
AND CHOOSING OPTION 44AD ( 8%) AND FILE ITR 4S
WILL PROVISION OF 40A(3) APLIED OR NOT ?

monika

monika (Querist)
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28 April 2017 ANY ASSESE WHO IS NOT IN AUDITED UNDER SECTION 44AB
AND CHOOSING OPTION OF 44AD ( 8%) AND FILE ITR 4S
WILL PROVISION OF 40A(3) WILL APLY ON THAT ASESEE OR NOT ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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28 April 2017 Though section 40A(3) does not speak of the same but technically since his accounts are not audited and he is filling return under presumptive taxation scheme u/s 44AD, he is anyway not allowed to claim expenses separately. As all expenses are deemed to have been allowed within the minimum rate of net profit of 8%. So as long as he is declaring 8% net profit, ection 40A(3) has no relevance for him.

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