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It act clause 269st

P V Gopal (Job) (127 Points)

08 April 2017

Dear Experts

I am working in a automobile dealership. I have a doubt on new IT cluase 269ST. Could you please guide

We sell commercial vehicles invoice value ranging from Rs. 2.70 lacs to Rs. 35.00 lacs. For each vehicle, we raise one invoice. If customer takes 10 vehicles, 10 separate invoices will be raised. Is it considered as single transaction or 10 transactions.

If customer paid cash of Rs. 2.00 lacs each against each vehicle, is it violation of 269ST or correct.

Within the same month, if the customer takes few more vehicles, are they separate transactions or entire monthly transactions considered as one.

Can you please guide

Thanks and Regards

Venu

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160668 Points)
Replied 08 April 2017

"If customer takes 10 vehicles, 10 separate invoices will be raised. Is it considered as single transaction or 10 transactions.

10 transactions, but if on same day: 1 event.

" If customer paid cash of Rs. 2.00 lacs each against each vehicle, is it violation of 269ST or correct.

Yes, if on same day, unless received less than 2 lakhs per day per invoice.

"Within the same month, if the customer takes few more vehicles, are they separate transactions or entire monthly transactions considered as one."

Seperate bills on saperate days are treated as separate whether month or year. (Why same customer, because he may be purchasing on some other's behalf!!!)

(Guest)

Totally agree with sir dhirajlal.

No person shall receive an amount of two lakh rupees or more— (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.

PENALTY FOR NON COMPLIANCE SECTION 271DA

If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt.

Jitender (C.A.) (33 Points)
Replied 10 April 2017

Sir, If the dealer want to refund the money to customer in excess of Red 10000. Can he do so? Please explain.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160668 Points)
Replied 10 April 2017

@ Jitender: No as per Section 269T. : Loan or deposit not to be repaid, otherwise than by an Account payee cheque or bank draft or online transfer, if the amount of loan or deposit is Rs. 10,000 or more.

Jitender (C.A.) (33 Points)
Replied 10 April 2017

Sir, This is refund amount which is get from customer on account of vehicle sale. We are giving back the excess money to customer.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160668 Points)
Replied 10 April 2017

The advance amount is treated as deposit here!!

durgaprasad (accounts executive) (225 Points)
Replied 11 April 2017

I need some more clarity about the 269 ST

1. If one customer purchased the goods of Rs. 200000/- on day and he may be purchased another Rs.200000/- of goods on the different day. He paid the money morethan Rs. 200000/- on first day and Rs. 100000/- on next day and Rs. 100000/- on 3rd day through cash . In this case the 269 ST is applicable or not. It's not single transaction on per day.

Let you give clarity about the issue