Cash payment

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ACCOUNTANT
66 Points Posted on 31 January 2020

Dear All Expert

I hv purchased the cloth Rs 51.0 0 lac from my buyer by multiple bills each bills above Rs 2 lacs. 

So my query is this can I pay the payment in cash against each translation Rs 2 lac. 

Suppose I paid Rs 10 lacs against 5 transaction  to my supplier will not it be violation of 269 st or it is permissible. 

Regards

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On 31 January 2020 at 18:57 Report
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Quick Summary
This discussion clarifies the legality of making cash payments exceeding Rs 2 lakhs. It explains that such payments are generally not permissible under Indian tax laws, specifically referencing Section 269ST which applies to the receiver and Section 40A(3) which prohibits cash payments over Rs 10,000. Violating these sections can lead to penalties.

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Studwnt
1141 Points Posted on 31 January 2020
Cash payment exceeding 10k is not permissable further it needs to be reported under various sections.
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On 31 January 2020 at 19:31
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12244 Points Posted on 01 February 2020
269ST applicable in the hands of receiver. in your case section 40A (3) will attract which prohibits payment in cash exceeding 10k
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On 01 February 2020 at 01:35

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