We went to buy jewellery yesterday for marriage person. We made the payment to the jewellery shop in cash for Rs 190100.00. The shop owner accepted the same and asked us the basic details like Name, Address and Phone Number. Now my question is if a person tells all these details false. What are the implications of payment made in cash
a. for the jewellery shop owner and
b. for the assessee.
Thanking You
please Reply
Dear Akansha
As per Section 206C(1D) of Income Tax Act, 1961 Every person, being a seller, who receives any amount in cash as consideration for sale jewellery, shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration exceeds five hundred thousand rupees (Rs. 5,00,000)
In your case the payment has not exceeded Rs. 5,00,000 so he has not deducted any TCS on it. He must be asking those details for his record purposes. So I dont think there will be any implications of it.
However u should have explannation that from where that money comes from in case your AO asked for it.
Regards
Rohit Gupta
Thank You Sir
CAclubindia
