Receipt of Cash

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 In a Hotel/Travel Business,customers frequently make large payments.

What are the formalities and precautions to be taken while receiving these large cash payments?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 Every receipt must be backed by proper bill and name of the party. That would suffice.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 What about obtaining PAN/photocopy of PAN Card?If PAN is not available,what is to be done?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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29 July 2010 Obtaining PAN/photcopy of PAN is not mandatory.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 If the receipt is a petty sum even name and address would do.

In case of huge sum being received say above Rs. 50,000 then you should ask for a PAN card copy. Not for every receipt.

In case of banquet halls being booked then keep proper records like date, name of person, purpose, address.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 If for bigger transactions,the person doesnot furnish details of PAN,can Form 60 be taken?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 Take his name and address and issue them a receipt for receipt of cash.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 Cash Receipt is being issued anyway.Is Form 60 in lieu of PAN not vailable to be obtained?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 YOu are not a bank to accept form 60.

If nothing is there then take form 60.