Cash receipt of less than Rs 2.00 lakh. Sec 269ST. Negative cash balance.

Can't understand Query..
Can you re-explain you Query.
You sold Goods to GST Registered customer, then payment will be received in cash or cheque,..(Payment received in which mode?)
why are you showing cash receipts without actual receipt of cash...?
to reduce negative balance means..?

I have maintained other account which is not declared. Because our CA has said that we shouldn't receive cash more than Rs 10000/-. I receive cash in actual more than Rs 10000 but dont declare receipt of only Cash upto 10000. But since I came to know that we can receive cash upto less than Rs 2.00 lakh as per IT law, can I declare it as receipt. On the other hand, my CA tells me that if you receive cash upto less than Rs 2.00 lakh, it can create a problem to your customer if he is audited. Pls guide?

As per Income tax Act, If you received cash less than 2,00,000 than there is no problem to you.because it's allowed as per law below 2,00,000/-

But second side, if your customers (if business entity) Paid more than 10,000 in cash than there is no penalty, but that payment is not allowed as Expenses in business of that entity. (it's not deductible for calculation of profit of the entity if paid in cash more than 10,000)...

So, if your customers pay you more than 10,000 than it can't create any problems to you, but your customers can not claim this as Expenses to calculate his profit, because it's disallowed. except this there is no problem.

Thanks a lot for clarification. My CA says that since ours is a registered pvt Ltd Company, this law isnt entitled to us. Please clarify once again. Will be thankful.

Agree with sagar ji and this law is also applicable on private limited company