Cash Sale limit in FY 2017-2018

Yes, You can issue  cash bill  upto 2 lakhs limit (single or in aggregate), per day per person, provided the purchaser is not a trader....... 

Limit for any businessman to purchase in cash is upto Rs. 10,000/- per bill. (as per section 40A(3) of IT act).

In case, purchaser insists for cash purchase, you can sell upto 2 lakhs in cash.

Welcome.....

Unless he declares his income under section 44AD, the cash expenses/purchases above Rs. 10,000/- per day are disallowed thus the amount is added back in his profits and taxed accordingly.

Dear Sir.,

In case a bill is Rs. 50000. Cash received Rs. 10000 * 5days.

This condition the above said rule applicable or not...?

It will be disallowed.......... as single event......

Under GST no such rules......

Under IT Act......... the limit recently reduced to 10K from earlier 20K........

Under section 44AD......... no such rules applicable........ assessment based on turnover only......

Others unaware of any such rules....... escape its applicability, only untill file opened under scrutiny!!!

Auditor cannot escape such rules.

Under the section...... the expenses are disallowed by ITO and the amount is added back to P&L account....... thus taxed additionally with interest, but not penalized otherwise....