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Cash Refund upto 200,000

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Surendar

Head of Accounts

241 Points Posted on 23 May 2023

Dear Experts, Kindly advise on matters relating to refunding a customer in cash to the extent of INR 200,000 or less on the same day of sales. (i.e)

1) The customer purchased an item for INR 150,000 and paid the amount in cash.

2) The same day, due to some reason, the customer returned the item to the seller and is seeking a refund in cash.

Please advise on the possibility of providing a cash refund, considering 40A(3), 271E, and 269ST, case laws if any, alike.

Many thanks in advance.

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Quick Summary

This discussion seeks expert advice on the legality and advisability of providing same-day cash refunds up to INR 200,000. Specifically, it addresses a scenario where a customer returns an item purchased for INR 150,000 in cash and requests an immediate cash refund. The query delves into the implications of Indian tax laws, including sections 40A(3), 271E, and 269ST, and asks for relevant case law.