Payment in cash against advance

Stat Audit 204 views 1 replies

Dharmesh Gohil

CA final

21 Points Joined September 2017

I trade in electronics..

A customer has paid advance of Rs 30000 in cash..

After few days he says he is not willing to buy anything from me and I return whole cash to him in a single day..

Will this attract sec 40a(3) or 269SS,269T?? or it will b allowed as deduction?

Replies (1)

Rahul Prasad

CA Student

1683 Points Joined September 2012

sir,
since it is payment made on behalf of advanced received from customer. the provision of payment in cash excess of 10000 shall not be attract here provided that receipt of 30000 received in cash by the same debtor to whom payment is being done. but let take the other opinion too.