Ohd status post 08/11/2016
This query is : Resolved
09 November 2016
Dear Sir,
I am a shopkeeper based in Delhi. I am selling sarees and dress materials. I have a daily estimated sale of about 250000 (Two lakh and fifty thousand only) mostly in cash. Ever since this notification of discontinuation of old 500 and 1000 notes we are experiencing a huge rush at our store. I want to confirm that as per the notification would I be able to deposit the current cash sale proceeds (in form of old notes) in our bank account till 30/12/2016 or not. As per our tax consultants we can deposit OHD notes in our bank account only if we are having cash in hand in our books prior to 08/11/2016; if there is any OHD cash generated post 08/11/2016 it won't be treated as legal tender and henceforth will be rejected from our books of accounts at the time of assessment.
Kindly advise against the above query immediately and oblige.
With best Regards
Ashish Jain
I am a shopkeeper based in Delhi. I am selling sarees and dress materials. I have a daily estimated sale of about 250000 (Two lakh and fifty thousand only) mostly in cash. Ever since this notification of discontinuation of old 500 and 1000 notes we are experiencing a huge rush at our store. I want to confirm that as per the notification would I be able to deposit the current cash sale proceeds (in form of old notes) in our bank account till 30/12/2016 or not. As per our tax consultants we can deposit OHD notes in our bank account only if we are having cash in hand in our books prior to 08/11/2016; if there is any OHD cash generated post 08/11/2016 it won't be treated as legal tender and henceforth will be rejected from our books of accounts at the time of assessment.
Kindly advise against the above query immediately and oblige.
With best Regards
Ashish Jain
09 November 2016
That is far from reality. If you have a cash sale of the amount you mentioned in your query for past reasonable period of time and which can be substantiated by your cash deposits for the earlier period......then you have a valid case to accept the cash even post 08/11/2016
10 November 2016
Dear Sir,
Thanks for your reply. What I am trying to clarify is that if i am doing sale in current date i.e 10/11/2016 and I am receiving cash payments from customers in current date i.e 10/11/2016 in form of OHD notes; will that be treated as valid in my books of accounts.
Kindly reply.
Thanks
Ashish Jain
Thanks for your reply. What I am trying to clarify is that if i am doing sale in current date i.e 10/11/2016 and I am receiving cash payments from customers in current date i.e 10/11/2016 in form of OHD notes; will that be treated as valid in my books of accounts.
Kindly reply.
Thanks
Ashish Jain
10 November 2016
01. The reasonable amount of sale can always be justified.
As you have said 250000 is your average daily sale. Upto 300,000 of sale may be regarded to be reasonable....But beyond that might raise the eyebrows in the minds of exchequor.
02. OHD cash received after 08/11/2016 will be rejected from your Books of accounts?? What is meant by that? What is rejected? Sale Or OHD? and how can only OHD be rejected? Can you please ask your consultant and send the reply? Also ask him/her...i am selling my regular goods against OHD....(I am NOT selling OHD) The selling of OHD is illegal and not accepting OHD against regular goods of your business, that too at its face value....Please revert
As you have said 250000 is your average daily sale. Upto 300,000 of sale may be regarded to be reasonable....But beyond that might raise the eyebrows in the minds of exchequor.
02. OHD cash received after 08/11/2016 will be rejected from your Books of accounts?? What is meant by that? What is rejected? Sale Or OHD? and how can only OHD be rejected? Can you please ask your consultant and send the reply? Also ask him/her...i am selling my regular goods against OHD....(I am NOT selling OHD) The selling of OHD is illegal and not accepting OHD against regular goods of your business, that too at its face value....Please revert
10 November 2016
Dear Sir,
As per our consultants any cash received (in form of OHD notes) in our books post 08/11/2016 be it through any legal sale of regular goods (post 08/11/2016) will not be considered as sale against any legal tender. Henceforth at the time of assessment of our income tax books the said sale will be treated as invalid.
Kindly reply against the above.
Ashish Jain
As per our consultants any cash received (in form of OHD notes) in our books post 08/11/2016 be it through any legal sale of regular goods (post 08/11/2016) will not be considered as sale against any legal tender. Henceforth at the time of assessment of our income tax books the said sale will be treated as invalid.
Kindly reply against the above.
Ashish Jain
10 November 2016
I dont think that the sale of goods against OHD shall be made invalid by Income Tax Department because that is against revenue.
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