Clarification on Section 269 ST
I have a client who is into the business of manufacturing and trading of Spare parts of Machinaries.
He raised 2 invoices worth Rs.10,25,480 (Value of each invoice is more than Rs.5,00,000)
Now, My question is can i collect 4,00,000 in cash( Assuming 2,00,000 against each invoice)
Kindly suggest an answer as per Section 269ST.
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Clarification on section 269ST
Replies (2)
Quick Summary
Yes u can receive but below 200000 .
Section 269ST prohibits any person to receive an amount of Rs.2 lakh and above in cash:
(i) In aggregate from a person in a day, or
(ii) In a single transaction, or
(iii) In respect of transactions relating to one event or occasion from a person.
You can take less than 2,00,000( not 2,00,000) per bill on different days and remaining in cheque if both bill given to single parties
If Both bill give to different parties, than you can receive less than 2,00,000 per bill on same day.
Ultimately, you have to consider all three conditions
(i) In aggregate from a person in a day, or
(ii) In a single transaction, or
(iii) In respect of transactions relating to one event or occasion from a person.
You can take less than 2,00,000( not 2,00,000) per bill on different days and remaining in cheque if both bill given to single parties
If Both bill give to different parties, than you can receive less than 2,00,000 per bill on same day.
Ultimately, you have to consider all three conditions
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