Dear all,
Please inform me.
Suppose" Mr.X" Purchase goods of Rs.100000/- from "Mr.Y" and "Mr.X" sold goods of Rs.110000/- to "Mr.Z" and mentioned on the sales bill issued to "Mr Z" ''Please Pay Rs.100000/- to "Mr Y" on behalf of me and make the balance Payment to Me (i.e :"Mr X").
Please confirm that whether this type of payments are allowed under Income Tax Act. (Please don't forgot to provide the Sections)
Regards
TRILOCHAN
its called endorsement of payment, but it can be done either for full amount or zero, partial endorsement can not be done.
Dear U S Sharma
Can you give me the section, where its mentioned
its banking rules, not of incometax
U S Sharma Jee mere CA ne bola ye transaction Income Tax main Allowed nahi hai.
true, partial endorsement is not allowed.
when mills send goods direct to manufacturers, under their invoice, they endorse bills in favor of agents to collect payment and the transaction is 100% endorsed,
so either 100% endorsed or zero
also it needs some stamp paper to endorse, ( in business language its called hundi)
CAclubindia
