one of my client has this query...
he has an outstanding balance with one of his builders for 35L n he received payment for rs.5L from him in cash, stating that i cant give u a cheque now cuz dont have balance with me in my bank a/c at present but will give u a cheque later....
now my client says wht entry shud be passed in books, because as per income tax act, S.40A(3) as in excess of 20000 other than by way of a/c payee cheque or demand draft?
there is no rule for payment received in cash.
but it will be problem for the payer.
if you want to save payer also than you can pass cash received in 25 back days i.e.20000 rupees per day
thanks for ur care to reply...
yeah, but my doubt is, what entry shud he pass in his books now for the cash received considering that he will receive cheque again for the amount later..
builder has no tax paid fund, so he paid "unaccounted" money to him................and would take it back by paying by cheque........
unaccounted money can not be accounted in your accounts also, as you have taken the money with a good deed between your builder and yourself.
in a nutshell due to shortage of tax paid funds the builder paid the sum in cash but kept pending the book entry of such amount, and in coming years when he will get easy with funds, he will pass book entry and get cash back.
hint : discussing everything in public forum is injurious to assesee's mental peace 
| Originally posted by : U S Sharma | ||
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builder has no tax paid fund, so he paid "unaccounted" money to him................and would take it back by paying by cheque........ unaccounted money can not be accounted in your accounts also, as you have taken the money with a good deed between your builder and yourself. in a nutshell due to shortage of tax paid funds the builder paid the sum in cash but kept pending the book entry of such amount, and in coming years when he will get easy with funds, he will pass book entry and get cash back. hint : discussing everything in public forum is injurious to assesee's mental peace |
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I am also of the same point in regards discussion of everything about assessees 
we are purchased accessories and we avail input on purchase but we saled foc to customer there is no collection of vat is there any problem in input vat utilization.
prasad
| Originally posted by : B.NAGENDRA VARA PRASAD | ||
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we are purchased accessories and we avail input on purchase but we saled foc to customer there is no collection of vat is there any problem in input vat utilization. prasad |
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cash a/c .........................Dr 20000
To client a/c 20000
20000 or less Every day upto the amount u required back dated
with reference to input vat credit
when no seperate vat is charged then it is assumed that sale value includes vatexampl
example : - goods is sold for 1050 on which 5% vat is chargeable but not charged seperately.
in above case, sale value includes vat=1050*5/105=50
vat is 50
CAclubindia
