Purchase and sales in cash
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 September 2014
An assessee is a wholesale trader and having a turnover of Rs.1 crore.
He has made a purchase of goods for Rs. 500,000 and paid cash.
He made a credit sales of Rs.550,000 and received cash after one month.
What will be the tax implications under incometax act?
He has made a purchase of goods for Rs. 500,000 and paid cash.
He made a credit sales of Rs.550,000 and received cash after one month.
What will be the tax implications under incometax act?
Nikhil Kaushik
(Expert)
21 September 2014
cash sales - No issue
cash purchases - the only issue will be if he paid in excess of Rs 20000 to any party on any given day. in such circumstances such cash payment shall be disallowed
cash purchases - the only issue will be if he paid in excess of Rs 20000 to any party on any given day. in such circumstances such cash payment shall be disallowed
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24 September 2014
yes only cash purchases disallowed u/s 40A (3)
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