Payment more than 20000/-

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2013 Can a farmar can purchases Agricultural Equipments with cash payment more than 20000/- will this affect the seller under any section of INCOME TAX like 269SS or 40A(2)

In My Knowledge This should not Affect the the seller position Please Give Your Reply.and it is yes please Quote under which section.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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01 February 2013 Section 269SS deals with loans.

Section 40A(3)is applicable for expenses only. So the seller would not be affected.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2013 What about 269ss & 269T if advance received against.and can amount refund to customer on cash.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 February 2013 Advance received against sale of Agriculture Equipment is not in the nature of Loan or deposit, Section 269SS is not violated.
.
For Cash Adjustment -care should be taken. In genuine cases, amount can be refunded. However, the practice should not be made in general.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2013 Thank u sir .