Meaning of single transaction u/s.269st

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CA Vijayakumar M

Partner in JPSK & Associates

45 Points Joined January 2010

What is mean by Single Transaction u/s.269ST?

My client is a Chit company, the company act as a foreman and getting commission on each auction. The chits conducted on monthly auction basis. The company collects from the participants of the auction and pay to the person who quoted the least bid in the auction after withholding its commission.

Whether the section 269ST is applicable to the Chit Company for the above transactions? Even if it is applicable, whether each auction shall be treated as a single transaction/an event or whole chit for the total period considered as a single transaction or an event?

Kindly let me know.

Replies (7)

rama krishnan

12244 Points Joined May 2017

yes section 269st will attract to the auctioneer at the time of collecting subscripttion from subscribers and to subscriber at the time of receiving auctioned amount subject to the condition that it exceeds 2 lac rs

CA Vijayakumar M

Partner in JPSK & Associates

45 Points Joined January 2010

Sir, Thanks for your reply. And whether each auction is a separate auction.

CA Vijayakumar M

Partner in JPSK & Associates

45 Points Joined January 2010

Sir, Thanks for your reply. And whether each auction is a separate auction.

rama krishnan

12244 Points Joined May 2017

welcome sir, conducting chit is one event and in respect of that event whatever amount received by the chit company during the particular p.y. will attract sec.269st. however inrespect of event aspect lot of clarifications yet to be received from board.

rama krishnan

12244 Points Joined May 2017

CA Vijayakumar M

Partner in JPSK & Associates

45 Points Joined January 2010

Sir, Thanks once again, Conducting chit is an event, whether it is meaning an auction by monthly or all the auctions in the chit period is an event.

rama krishnan

12244 Points Joined May 2017

sir as of now no clear definition has been given for the term event. each and everyone will interpret it in favour of their case. after the completion of scrutiny for a y 2018-19 and the outcome of the appeals only we'll come to know.