Sft in form 61a for jewellery business u/s 114e

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In the jewellery sector the threshold limit for consideration of cash Rs.500000/- and bullion is Rs.200000/- on last year . There was a change in the Finance bill 2017. AS per the 206C finance bill 2016 , we collected the cash amount of Rs.400000/- for sale of jewellery . TCS was not attract @ 1% on the transaction for AY 17-18. Now we preparation of the SFT-13 for form 61a , it was mentioned the receipt of payment of sale/purchase more than cash Rs.200000/- for goods and services. (1) This section is applicable for goods and services only or if effected of the jewellery sector. (2) If effected, we were collected the cash amount of Rs. 400000/- on the last year as per 206C. What will do for the submission of SFT Form 61a. (3) TCS cap has removed for FY 2017-18 for jewellery sector or not. Give your valuable suggestions regarding my Query !!!
Replies (6)
Quick Summary
The discussion clarified SFT reporting for jewellers under Form 61A. Cash receipts above Rs. 2 lakh for goods/services must be reported irrespective of TCS applicability. For FY 2016-17, PAN was mandatory for transactions above Rs. 2 lakh under Rule 114B. Sellers must also verify PAN validity under Rule 114C. Aadhaar cannot substitute PAN where PAN is legally required.

61A is applicable to all cash receipts whether suffered TCS or not. So in your case since there were cash receipts of more than Rs. 200000 you are mandatorily required to file 61A.
TCS applicability on cash sales of jewellery removed from FY 2017-18 since Section 269ST introduced.

Thank you for your response sir, but on previous year we collected the cash receipts upto Rs.4,99,999/- in the jewellery sector.  As per IT ACT 206C , TCS applicable for  bullion and jewellery on previous year were exceeding Rs.200000/- and Rs.500000/- respectively in cash sale consideration.  Now in Form 61A , receipts of payment of cash exceeding Rs.200000/- for goods or services.  This case is applicable per also for jewellery sector sir, if effected the case  what we do the more than cash Rs.200000/- collected on previous year.  Can you give your valuable suggestions according this Query 

Rule 114B was amended w.e.f 01.01.2016. According to the amended rule PAN is mandatory for sale/purchase of goods above for Rs 200000 in any mode of payment. So you were under obligation to obtain PAN of buyer or Form 60 whenever there was sale of more than Rs 200000 in FY 2016-17. If you failed to obtain PAN then you will be in trouble now and be ready to face the penal consequences.

Thank you for your nice clarification and suggestions about my query ...... I heard, some of the customers are give invalid pan card details.  In such case, what to do......  (1) Can we take the aadhar card details of the customer inlieu of invalid pancard/customer have not a pancard.

Please refer Rule 114C of IT Rules. It casts duty on the person taking the PAN to verify its correctness. So a person selling goods or services is not only required to obtain PAN of buyer (u/r 114B) but also required to verify its correctness (u/r 114C). Also PAN requirement cannot be substituted with Aadhar since law requires obtaining PAN of buyer.

Thank you very much sir and a wonderful clarification

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