Hi.
I had a discussion with a finance expert regarding limit of receipt of cash by business firm. His arguement is that a business firm cannot receive 2.00 lakh or more in an year from a single customer as per GST Act 2017 and IT Act. But I have come to know from many sources that a business entity can receive upto Rs 1,99,999/- cash in a day from a single person per transaction. Please clarify is there a y rule as per GST Act or IT Act which says that from each customer, firm cannot receive more than Rs 2.00 lakhs in a year.
Will be thankful if someone clarifies.
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Receipt of Rs. 2.00 lakh in cash by business entity
Replies (3)
As per section 269 ST a person cannot receive more than 200000 from a single person in a day there is a limit on a day not on yearly according to IT act
Section. 269ST of IT Act, 1961. No person shall receive an amount of two lakh rupees or more in cash—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person..
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person..
You can receive in cash upto 199000 irrespective of ur bill value whats so ever. penalty will not be imposed if you receive in cash below 2 lakhs
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