As such not, but if the invoices are also bifurcated..........

Hello  All .

what would be accounting treatment when creditor directly make cash deposit against purchase into our account .

in our bank account statement its come as " cash deposit by (party name )

No specific ruling exists. Generally it will be bank credit if the credits are in non-home bank branch. Otherwise it can be treated as conta (cash receipt that is deposited to own account).

Generally, such transactions are to be avoided when other options are plenty, because this may lead to contraversy, and liable for in-person verification.

Can we purchase materials in cash from UR Person or dealer above 10000 in a day

For  non-business expenditure...... No such restriction.........

Even for businesses where presumptive income declared.......... No such question........

But where business income is assessed under normal assessment (i.e. where section 40A(3) of I T act is applicable)....... there is restriction, otherwise it is disallowed.

Even under GST there is no such restriction for such purchase from URD/RD.

Originally posted by : Dhirajlal Rambhia
	"Can we pay salary in cash w.e.f 01-apr-17. If yes , what is the maximum limits." As such cash expenditure per day per person should not exceed Rs.10,000/- or is disallowed. & some employers are in habit of breaking the salary component on different dates!!! But its advisable to stop such practice for permanent employees, as ITO may disallow such disintegeration. (As per IT act, 1961) Thats why Government had passed an ordinance in December 2016, which then passed in partliament as bill in February 2017 known as The Payment of Wages (Amendment) Bill 2017; seeking to enable the Centre and state governments to specify industrial units which will have to pay wages only through cheques or by transferring money into bank accounts. ( As per labour act) By making state-level amendments to the Act, Andhra Pradesh, Uttarakhand, Punjab, Rajasthan, Kerala and Haryana have already made provisions for payment of wages through cheque and electronic transfer. So, any salary of Rs.10,000/- and above must be paid by non-cash transaction mode.

Dear sir,

If we paid salary of Rs 8000 in cash then we comply with the provision of income tax act only and not comply with the provision of Payment of wages act which said "salary and wages should be paid by non-cash channel".

Please guide me on this.

Regards

Rahul Gupta(Student)

@ Rahul Gupta........

Attached herewith the amendment bill introduced in Loksabha on 17January, 2017...... which as per my knowledge, pending for approval......

Secondly note the following........

"ANNEXURE

EXTRACT FROM THE PAYMENT OF WAGES ACT, 1936

(4 OF 1936) * * * * *

6. All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

* * "

So, here employer will have to obtain permission from the employee for non-cash mode of payment!!

@ Rahul Gupta........

Attached herewith the amendment bill introduced in Loksabha on 17January, 2017...... which as per my knowledge, pending for approval......

Secondly note the following........

"ANNEXURE

EXTRACT FROM THE PAYMENT OF WAGES ACT, 1936

(4 OF 1936) * * * * *

6. All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

* * "

So, here employer will have to obtain permission from the employee for non-cash mode of payment!!

@ Rahul Gupta........

Attached herewith the amendment bill introduced in Loksabha on 17January, 2017...... which as per my knowledge, pending for approval......

Secondly note the following..

"6. All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

So, here employer will have to obtain permission from the employee for non-cash mode of payment!!

@ Rahul Gupta........

Attached herewith the amendment bill introduced in Loksabha on 17January, 2017...... which as per my knowledge, pending for approval......

Secondly note the following........

"ANNEXURE

EXTRACT FROM THE PAYMENT OF WAGES ACT, 1936

(4 OF 1936) * * * * *

6. All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

* * "

So, here employer will have to obtain permission from the employee for non-cash mode of payment!!

Attached herewith the amendment bill introduced in Loksabha on 17January, 2017...... which as per my knowledge, pending for approval......

Secondly note the following........

"ANNEXURE

EXTRACT FROM THE PAYMENT OF WAGES ACT, 1936

(4 OF 1936) * * * * *

6. All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

* * "

So, here employer will have to obtain permission from the employee for non-cash mode of payment!!

@ Rahul Gupta........

"ANNEXURE

EXTRACT FROM THE PAYMENT OF WAGES ACT, 1936

(4 OF 1936) * * * * *

6. All wages shall be paid in current coin or currency notes or in both:

Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.

* * "

So, here employer will have to obtain permission from the employee for non-cash mode of payment!!

So sorry, not able to post reply even after repeated attempts........

HELLO SIR, I AM VERY IMPRESS AFTER READING YOUR POST FREQUENTLY AND WE ARE HAVING GOLD JEWELLERY BUSINESS SO WE HAVE FLOW FOR URD PURCHASE, SO CAN WE BUY OLD GOLD/SILVER JEWELLERY FROM CUSTOMERS MORE THEN 10,000/RS IN CASH? AND CAN YOU INFORM CASH LIMIT FOR BUY THESE URD PURCHASE?

HELLO SIR, I AM VERY IMPRESS AFTER READING YOUR POST FREQUENTLY AND WE ARE HAVING GOLD JEWELLERY BUSINESS SO WE HAVE FLOW FOR URD PURCHASE, SO CAN WE BUY OLD GOLD/SILVER JEWELLERY FROM CUSTOMERS MORE THEN 10,000/RS IN CASH? AND CAN YOU INFORM CASH LIMIT FOR BUY THESE URD PURCHASE?