Is rule 6dd restrict cash purchase goods exeeding rs. 20000

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This query is : Resolved

monika (Querist)

25 August 2016 section 269 SS and section 269T restrict loan deposite exceeds rs. 20000
rule 6DD restrict expenditure in a day in cash exeeds rs, 20000

is any section or rule restrict purchase of goods and service exceeds rs. 20000

because purchase of jwellary allow in cash up to 5 lakh with out collect TCS
i mean can we shoping exceeds rs, 20000 in cash?

ACA Anurag

ACA Anurag (Expert)

25 August 2016 Dear Monika,

Kindly refer 114 E, and 114 B and also section 206 C as all this restrict Cash transaction.

Rule 6DD restrict purchase of more than 20000 in a single day and hence u cannot purchase in cash ( any transaction exceeding 20000)

Kindly like if my response has helped you

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monika

monika (Querist)

25 August 2016 cofused
is rule 6DD restrict to small trader who have purchase good from wholeseller of amount greater than rs. 20000 on bill?
and
is rule 6DD restrict to a person who have purchase jwellary from from shop of jwellers of amount greater than rs. 20000 on bill?
if it is truth how can be people make shoping in cash these days?

ACA Anurag

ACA Anurag (Expert)

25 August 2016 Dear Monika,

Rule 6DD is applicable for a dealer.

For a customer rule 6DD is not applicable. (my earlier answer was keeping in view as a dealer)

So u can purchase jewellery amount to Rs 500000 in cash from June 1

Also TCS provison is rolled back on jewellery.

Kindly like if my response has helped you

monika

monika (Querist)

25 August 2016 confused again anurag ji

see this link

https://www.lawyersclubindia.com/experts/CASH-PAYMENT-RECEIPT-ABOVE-20000-ON-PURCHASES-SALES-87316.asp

ACA Anurag

ACA Anurag (Expert)

25 August 2016 Dear Monika,

U can purchase jewellery in cash amount to Rs 500000.

I am unable to understand what u want to ask?? If u r a buyer then where the point of disallowance arrise?

A customer can purchase cash jewellery amount to Rs 500000 (With Pan) as government has already issued this limit on June 1

Hipe your query is resolved now

monika

monika (Querist)

25 August 2016 one more query anurag ji
clear my doubt about these section and rule about day or year

acording rule 6DD cash lmit of rs. 20000 in will aply for single day or a year ?

acording section269SS and 269T cash lmit of rs. 20000 in will aply for single day or a year ?

can we split to pay big amount less than rs. 20000 in defrent days in a year ?

ACA Anurag

ACA Anurag (Expert)

25 August 2016 Dear Monika,

Rule 6DD is applicable on day basis (20000 is per day basis)

Section 269SS if for loan and section 269T deals with banking company

monika

monika (Querist)

25 August 2016 please clear about 269ss and 269t aply on single day or a year ?

and about split of big amount under rs. 20000 in defrent days to avoid restriction of section 269SS and 269T and rule 6DD

ACA Anurag

ACA Anurag (Expert)

25 August 2016 Dear Monika,

You can split for some day but regularly if its done then it will come into notice

Rule 6DD limit is 20000 per day ( Related to expense)

Sec 269SS and section 269T limit is 20000 for entire year ( for loan transaction)

Kindly like if my response has helped you

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