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Cash Purchase
Can a trader buy products worth of 53000/- in cash for supply, is it allowed ?
Replies (6)
Such transaction will attract disallowance u/s 40A(3)..
40a(3) will applicable if you are liable to tax audit Any payment in cash above Rs. 10,000 to any person in a day shall not be allowed as deduction in computation of Income.
If you are not required to tax audit then you buy worth Rs. 53000/- in cash.
If you are not required to tax audit then you buy worth Rs. 53000/- in cash.
I am a trader having turnover of around 50Lakhs u/s 44ADA
Please explain Your trading details...
u/s 44ada is professional income. Not applicable for business incomes...
u/s 44ada is professional income. Not applicable for business incomes...
sorry it's 44ad not 44 ada, so please confirm
Yeah... If Your business is eligible under sec 44ad then you can file ITR 4 and the expense is not levied any penalty or disallow...
But, Better to avoid such related transactions...
But, Better to avoid such related transactions...
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