Sec 269SS and Sec 269T
This query is : Resolved
17 September 2019
ABC Pvt Ltd, a finance company had made a Gold Loan Advance of Rs 25000 in cash to customer on 10/08/2019 and the Customer Repaid it in cash amounting Rs 28500(including interest) on 10/09/2019.
1. Provide Expert opinion on Applicability of Sec 269SS and 269T on the above transaction.
2. In above transaction, which person will be held liable for the Sec 269SS and 269T (company or Customer)?
1. Provide Expert opinion on Applicability of Sec 269SS and 269T on the above transaction.
2. In above transaction, which person will be held liable for the Sec 269SS and 269T (company or Customer)?
17 September 2019
Section 269SS prohibits a taxpayer from taking/accepting loans or deposits or a sum of more than Rs.20,000 in cash. All loans and deposits of more than Rs.20,000 must always be taken through a banking channel.
1 Yes both sections applicable on the above transaction.
2 Company is liable and customer is liable if he is a tax payer.
1 Yes both sections applicable on the above transaction.
2 Company is liable and customer is liable if he is a tax payer.
17 September 2019
Ok, sir.
How a company is liable???
As per Sec 269SS, 100 % is for a person who is accepting or taking a loan more than Rs 20000.
As per Sec 269T, 100% penalty for person repaying the loan in cash more than Rs 20000.
Here the company is paying the loan in cash to the customer. So Sec 269SS is applicable only to the customer.
And on repayment of Rs 20000, Sec 269T is applicable only to the customer.
Kindly advise.
How a company is liable???
As per Sec 269SS, 100 % is for a person who is accepting or taking a loan more than Rs 20000.
As per Sec 269T, 100% penalty for person repaying the loan in cash more than Rs 20000.
Here the company is paying the loan in cash to the customer. So Sec 269SS is applicable only to the customer.
And on repayment of Rs 20000, Sec 269T is applicable only to the customer.
Kindly advise.
Message likes :
1 times
18 September 2019
Yes agreed with you only customer is liable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- Relief u/s Section 89
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Plot of land. Cost of Acquisition
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
