Payment in cash more than 20k

Friends,

I am a Tin holder. I purchase goods all over India. Bill amounts varies for each bill from a single supplier.

It may be 5000, or it may be 50000. We generally settle bill when he comes for collection. For a month if it aggregates to 1 lakh, we give him some amount. Say 50000 in cash.

As it is more than 20000 he is giving me 3 receipt with three dates. Is it fine to continue or should I pay him through cheque of 50000 at a time.

Generally if I pay cheque it will be extra work for me to go to bank every time and deposit money in my account and give cheque ,as most of my sales bills are small and cash oriented. 

Please suggest.

 

 

 

 

Replies (2)

As such no harm for cash purchase of goods, but better to train self to accomodate for cash-less transactions. It help in many ways.

I know u have to take extra efforts to go and deposit cash, but start card swipe machines, so migjt be it will help u lil, and even u can do one thing deposit cash of 2-3 suppliers in your cc account before clearing of cheque or like that. So your efforts will be little saved and u can move to cashless.

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