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Cash receipts

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Mukesh Bajaj

5 Points Posted on 24 January 2020

sir , we deals in cement and TMT and mostly our customers are B2B ,and we raise multiple bills of maximum upto Rs 1.25 lakhs in a month , can we receive cash against the goods sold , if it cross Rs 2 lakh

Replies (3)

Quick Summary

This discussion clarifies the rules around receiving cash payments for B2B sales of cement and TMT, particularly when multiple bills are involved. While there's no specific restriction on receiving cash, businesses must adhere to Section 269ST of the Income Tax Act. This means avoiding aggregate cash receipts exceeding £2 lakh from a single person in a day, or £2 lakh for a single transaction, to prevent penalties.

Roshni

Studwnt

1141 Points Posted on 24 January 2020

For receipt there is no provision... provision is only for payment. so yes you can get cash...it's front personal responsibility to not to pay more than 20k in a day in cash

rama krishnan

12244 Points Posted on 24 January 2020

You shouldn't receive in aggregate amount exceeding rs. 2 lakhs from a person in a day or amount exceeding rs. 2 lakhs in respect of single transaction or pertaining to an event as per section 269ST. in your case, if you receive in excess of rs 2 lakhs in a day from a person even in respect of multiple bills, it'll attract 269st. similarly, even if you receive in excess of rs 2 lakhs on various days in respect of single transaction, then that also will attract 269ST