Cash transaction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2016 Respected Sir, Please provide me your opinions: My Client is running a business of Tax Payment Services and engaged in consultancy business having a valid Trade License, my question is he is maintaining Current Account for transaction and he use to collect cash from different client and he paid the online tax on behalf of his client such as Income Tax, Service Tax & VAT Tax. Secondly accepting of Cash and making of online payment in favor of Direct Taxes and Indirect Taxes againt which he charges Rs. 50/- as tax payment charges for each transaction, is there any wrong in the above business, or is their any violation of provision of Income Tax or any other Law. Please advice me.

Sandeep Dharar

Sandeep Dharar (Expert)
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21 November 2016 There is nothing wrong in the above transactions. But I'll suggest to take cheque or NEFT/RTGS in that very account from which tax is paid on behalf of the client. Coz the tax is paid online, so question may arise for deposit of such cash into that current account.