Chartered Accountant
182 Points
Joined July 2016
Hello,ย
My query is that can a company accept an amount exceeding Rs. 20,000 in cash , as an advance from debtor?
Also, please confirm provisions of Sec 206C (TCS) if services rendered during year exceed 2L (different invoices have been made).
Accounts Manager
1466 Points
Joined August 2013
NO , YOU CAN NOT GET EXCEEDING RS 20 THOUSAND IN CASH FROM DEBOTORS AS PER U/S 40 A
Chartered Accountant
182 Points
Joined July 2016
but it specify for payment only...?
Finance head
681 Points
Joined December 2012
Hi,
If you want to receive the payment in cash than tell the debtors to deposit it directly in bank accounts by cash mode it can not violate the section 40 (a) (3).
Section 206c is applied for single invoice only if different invoice has been prepared than this section is not applicable.
Accounts Manager
1466 Points
Joined August 2013
Sorry Viral Sir,
I donโt understand ,,,,,,,,,,,,, yes the debtor can deposit cash in bank ,,,,,,,,,,,,,,, but in fact, cash amount less ( Debit ) to Simran cash in hand when he make entry in his cash book and bank books , so how can he get amount from debtor ,โฆ
Finance head
681 Points
Joined December 2012
I dont understand please eleborate it in detail.
Accounts Manager
1466 Points
Joined August 2013
AFTER CASH DEPOSIT IN COMPANY BANK A/C ,,,,,,THAN THE COMPANY ENTRED IN THEIR ACOOUNTS BOOK THIS ENTRY AS FOLLOW:
VOUCHER TYPE: CONTRA
Dr : BANK A/C
CR : CASH (MEANS CASH OF COMPANY)
THE DEBITOR A/C WILL BE SAME
Finance head
681 Points
Joined December 2012
Hi,
The journal entry would be as follows
suppose Mr.A is depositing the cash in XYZ pvt ltd than the entry would be
Bank account Dr..
To Mr. A account.
Accounts Manager
1466 Points
Joined August 2013
VIRAL SIR, ,,,,,,,ITS OK ,,,,,,,BUT IN THE BANK STATEMENT THE ENTRY SHOW CASH DEPOSIT NOT DEBITORS NAME,,,,,,,THE AUDITOR CAN BE ASK TO COMPANY ABOUT THIS ENTRY AND WHEN THE AUDITOR SAYS THAT ,,,,,YOU SHOULD FIRST CASH RECEIVED FROM DEBITOR IN YOUR CASH BOOK AND AFTER THAT SECOND ENTTRY CASH DEPOSIT IN BANK ,,,,,,,,,IN THIS TRANSACTION THE PROBLEM OF CASH RECEIVE EXCEED RS 20000 WILL BE REMAIN SAME