CASH RECEIPTS ABOVE 20,000 FROM CUTOMERS AGAINST SALE

This query is : Resolved

Amit Agarwal (Querist)
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15 July 2011 In a China Mobile trading Pvt Ltd Company and also having a Proprietorship Firm dealing in purchase and sale of mobile phones and accessories, lots of customers comes with huge cash above 20,000 to purchase mobile phones.

1) So this company is selling against huge cash receipts. Is this correct, is there any provision which is being over-ruled?

hshivakumar

hshivakumar (Expert)
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15 July 2011 When company is selling mobiles for cash for more than 20,000/- there is no problem as such

Ravikant

Ravikant (Expert)
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15 July 2011 No provision is being over-ruled

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 July 2011 For the China Mobile trading Pvt Ltd Company dealing in purchase and sale of mobile phones and accessories, it is compulsory to make payments by Account Payee cheques to its creditors against its purchases.
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However, no provisions are being over ruled by the company while selling in cash.
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Again, from the purchaser's point of view-
1. In case the purchaser is not a dealer in mobile and its accessories, there is no problem to him , but in case the purchaser is a dealer, he should be advised to make payment by account payee cheques to the CMPL. This will help their customers in adhering with the provisions of law.

A good merchant always thinks about the
customers benefits also.