According to amendment for CASH PAYMENTS EXCEEDING 10000 u/s 40(A)3, is it applied on cash sales? Many of our clients have a retail counter Most article costs more than 10000/-, they can't be sold in cash? Customers here are not paying through electronic mode or cheque, they insist to accept cash. If they say they accept more than 10000/- cash customer says they ll buy from somewhere else. This is affecting business very much. Please explain provision and any way out.
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Cash sales
Replies (11)
No it will not be applicable for cash sales..........
..................where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, the disallowance of such expenditure shall be made under the proposed sub-section (3) of section 40A or the payment shall be deemed to be the profits and gains of business or profession under the proposed sub-section (3A) of section 40A,as the case may be.
First of All Section 40A(3) is applicable on cash payment not on cash receipt. Hence you can accept sale proceed in cash too.
Second Thing Limit of 10000 is applicable from 01.04.2017 as it is amended by finance act 2017. Present limit is 20000.
sir till what extent can he accept cash on sale in a single bill?
Rs. 200000 from 01.04.2017 under section 269ST
Agree with Mr Manish
yes manish sir correct....
-For 40(A)(3) Payments upto f.y 2016-17 limit is Rs. 20000.
-Rs 10000 limit applicable from 1.4.2017
Agree with the above view. It is a disallowance of expensiture section only. Doest not apply to cash sales
I HAVE QUESTION WE CAN ISSUE 10 BILL 190000 RS. ( FROM DIFFRENCT DATE ) ONLY ONE PERSON
EXAMPLE I SELLER AND SHYAM IS PURCHASERE THAN I ISSUE BILL ( DIFFRENCT DATE , DIFFRENT AMOUNT BUT PERSON SAME)
BILL NO. 10 DATE 15-04-2017 AMOUNT 195000
BILL NO. 20 DATE 25-04-2017 AMOUNT 190000
BILL NO. 25 DATE 26-04-2017 AMOUNT 194000
BILL NO. 30 DATE 30-04-2017 AMOUNT 1950000
IT IS IMPOSIBLE I CAN ISSUE BILL AND RECEIVED AMOUNT
Dear All
can i sell of amount more then two lac in a day to diffrant person
Cash Sales exceeding Two lakhs (in aggregate) in a single Day to various Persons is allowed.
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