Hello Sir,
Can anyone clarify the rules for B2B buyers on Purchase of Goods in cash of more than Rs 10000. Because, we buy goods from many wholesalers from different cities of India and they ask for 100% payment in cash before giving Goods.
I know there is 2 lakh limit for "Sellers" but what is the rule for buyers on cash purchases of 30-40K in single day from one wholesaler. Are our purchase bills valid or not ?
Thank You
Hello Sir, Then what is the option, if seller asks for 100% payment , Cheque processing takes 2-3 days . If we give cheque then what is the guarantee if supplier do not deliver goods after cheque is processed or create problems. How can we trust a seller in different city that we give him cheque and he will deliver goods after few days.
Suppose I have paid Rs. 130000/- in a day as cash purchase to supplier.
I have filed my ITR u/s 44AD disclosing my profit @ 10%.
How disallowed Rs. 130000/- be treated in my income?
Whetther it will be added to my profit or not?
whether my tax liability will increase or not?
CAclubindia
