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269ST, TCS applicable or not in our business ???????

Tax queries 317 views 2 replies

Respected  forum experts,

We are FMCG manufacturing and trading firm.  We sell goods  in open market through  mini vehicles, 85% of our sales turnover in a year are cash transactions.  Majority of our customers are buying more than 2 lacs (various day and bills) in a year. 

 

If we collect these amounts in cash in different days.

Question  1:  269ST applicable or not?

               2: TCS (1%) applicable or not?

               3: Can we collect cash above Rs. 10,000/- from customers in a day towards sales?

Please clarify these doubts as early as possible.

with regards

Ansad. P

Replies (2)

1. " Majority of our customers are buying more than 2 lacs (various day and bills) in a year. "  Sec 269ST not attracted.

2.  No

3. Yes, but retailer will not be allowed the cash purchase!! Better to accept cheques.

1. As long as bills are different and paid on different dates and none of them equals or more than Rs 2 Lakhs section 269ST not applicable.

2.  TCS of 1% no longer applicable.

3. Cash expenditure limit of 10000/- is applicable for payers only u/s 40A(3) and not to the payee. But if payers are claiming the expenses of purchase in P&L account then any payment in cash exceeding Rs 10000/- shall be disallowed to them.

 

 

 


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