Cash limit for farmer payment on direct purchase

This query is : Resolved

Mukesh Katariya (Querist)
Follow

18 October 2020 Sir, who has made it a rule to buy from the farmer outside the market, is there a limit of Rs. 200000 in cash payment to the farmer or not, and if so, what documents do we have to take from the farmer at the time of purchase?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 October 2020 CBDT vide Circular No. 27/ 2017 F. No. 370149/213/2017 –TPL specifically clarified that “any cash sale of an amount of Rs. 2 lakh or more by a cultivator of agricultural produce is prohibited under section 269ST of the Act”.