Cash limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2014 Dear all member ,we are the dealer of car of all Bihar(Renault), some costumer bye the car in cash, that is maximum to rs. 12 lakh. in that case we always note their pan no. but sum time they take back their money,but in that case what should we do. can we take cash for sale of car or we should maintain limit of cash (20,000).

vibhor

vibhor (Expert)
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08 May 2014 From my point of view, you should ask for DD or RTGS or Account payee cheques, but if the Buyer insists, you can accept cash for sale of car. Give them a valid Cash Receipt and then account for the cash in your books properly. Take the copy of PAN of the buyer.

http://cavibhorjain.com/

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2014 but what is tax treatment. is there no ceiling of cash,

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vibhor

vibhor (Expert)
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08 May 2014 To recieve Cash, their no ceiling. For payments in Cash, there is limit of Rs.20000/- subject to various exclusions. As far as your case goes, you can accept cash from the buyer.

http://cavibhorjain.com/