Sale of old lorry

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Rakesh Sharma (Querist)
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02 June 2015 A Pvt. Ltd. company want to sale a Old Lorry for Rs.2,20,000/-.

Purchaser have not Chq book & unable to give chq. & ready to pay in cash.

Can we sale the above lorry in cash?

I read in Budget that PAN is mandatory in every sales or purchase in above Rs. 1.00 lac & the purchaser do not have PAN.

So what to do. Please advise.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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02 June 2015 1. You ask the purchaser to transfer the amount by RTGS. He can send the amount by RTGS by visiting his bank.

2. You ask the purchaser to apply PAN

Rakesh Sharma

Rakesh Sharma (Querist)
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02 June 2015 Thanks Sir

I want to know that this section apply on every transaction or accumulated balance of Rs. 1.00 Lac on sale & purchase.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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02 June 2015

To curb black money within the country, Finance Minister Arun Jaitley in his Budget 2015-16 proposals said quoting of Permanent Account Number (PAN) will be made mandatory for any purchase or sale exceeding the value of Rs. 1 lakh.

The finance minister said that tax authorities are also making provisions to check "splitting of reportable transactions" by people to avoid quoting of the PAN.

By reading the FM speech, it is clear that, the said provision introduced for the purpose of 'avoid the black money transaction'. So, as per my understanding, it includes the both i.e., 'single transaction' as well as 'accumulated balance.'

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