Cash Deposit towards sales will be taxed ?
This query is : Resolved
06 February 2009
Sir,
Can we accept unlimited cash towards supply of material ?
Will it be harmful under Income Tax Law ?
Will it be taxed ?
Is there any case law for this, if yes than send me.
Hasmukh Patel
Can we accept unlimited cash towards supply of material ?
Will it be harmful under Income Tax Law ?
Will it be taxed ?
Is there any case law for this, if yes than send me.
Hasmukh Patel
07 February 2009
u can accept it, but the person who will pay to u, then the exp will be disallowed to him if it crosses 20000.
07 February 2009
As rightly opined by Sri Jitender, acceptance of cash towards Sales doesn't adversely affect you from Income tax point of view.
But Person who pays you cash is your Customer. In order to maintain coordial relations with Customers, it is desirable for you to orally infom your Customer of tax implications in assessment of his activities, if he pays cash due to unawareness
Normally all business people are aware of tax implications.
Any way, from your side, do NOT transfer or appropriate the amount in due course also towards Security Deposit etc., because acceptance of cash towards Security Deposit has tax implications
But Person who pays you cash is your Customer. In order to maintain coordial relations with Customers, it is desirable for you to orally infom your Customer of tax implications in assessment of his activities, if he pays cash due to unawareness
Normally all business people are aware of tax implications.
Any way, from your side, do NOT transfer or appropriate the amount in due course also towards Security Deposit etc., because acceptance of cash towards Security Deposit has tax implications
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Confusion around Form 26QB fields
- RCM INVOICING FROM NOV-2024
- GST Regis.
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
