Consolidated sales

Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.  

 

If sales is above 200000 in cash. seller and buyer is mandetory to quote PAN No. on invoices. not required to inform same to IT dept.

If sales is above 200000 in cash. seller and buyer is mandetory to quote PAN No. on invoices. not required to inform same to IT dept.

If sales is above 200000 in cash. seller and buyer is mandetory to quote PAN No. on invoices. not required to inform same to IT dept.

If sale is above 200000 rs. Required to quote PAN no and same report to IT dept under rule 114B read with section 285

SITUATION I (W.E.F. JANUARY 1, 2016 ONWARDS)

TRANSACTION OF SALE/PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION AND BUYER HAS PAN

ACTION REQUIRED

PAN of seller and buyer to be written on the invoice itselfVerify the pan of buyer by taking copy of PAN cardNo other compliance/filing of returns required

SITUATION II (W.E.F.JANUARY 1, 2016 ONWARDS)

TRANSACTION OF SALE or PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRNSACTION BUT BUYER HAS NO PAN

ACTION REQUIRED

One time registration as reporting entity from Income Tax DepartmentPAN of seller to be written on the invoice itselfForm no 60 to be taken from buyer at the time of transaction with Id and address proof -KYCA return in form no. 61 to be filed Half Yearly for such transactions (last date being 31st October for the half year ending September 30 and 30th April for the half year ending March 31. (since rules are applicable from January 1, 2016 hence first report in form 61 will be for the period January , 2016 to March 31, 2016

CASH TRANSACTIONS OF SALE OR PURCHASE

TO BE REPORTED W.E.F. 01/04/2016

SITUATION III

TRANSACTION OF SALE or PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION ON CASH BASIS EVEN THOUGH BUYER HAS PAN

ACTION REQUIRED

One time registration to be obtained by seller as reporting entity from IT DepartmentPAN of seller and buyer to be written on the invoice itselfVerify the PAN of buyer by taking copy of PAN cardAnnual Return in Form no. 61A to be filed latest by 31stMay for the complete financial year 2016-17 onwards with Director/Joint Director of Income-tax (Intelligence and Criminal Investigation).

SITUATION IV

TRANSACTION OF SALE OR PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION ON CASH BASIS AND BUYER HAS NO PAN

ACTION REQUIRED

One time registration to be obtained by seller as reporting entity from IT DepartmentPAN of seller to be written on the invoice itselfForm no 60 to be taken from buyer at the time of transaction with id and address proofA return in form no. 61 to be filed Half Yearly for such transactions (last date being 31st October for the half year ending September 30 and 30th April for the half year ending March 31. (since rules are applicable from January 1, 2016 hence first report in form 61 will be for the period January , 2016 to March 31, 2016Annual return in form no. 61A to be filed latest by 31stMay for the complete financial year 2016-17 onwards with Director/Joint Director of Income-tax (Intelligence and Criminal Investigation)