Purchase of river sand - accounting procedures
This query is : Resolved
10 April 2013
Hi I am doing the audit of a construction company. They are buying river sand from different people ( It is coming under 'unregistered purchase' ). Almost all of them were cash payments and some exceeded 20,000 also. The yearly payments to all of them run to Lakhs of rupees.
The suppliers wont supply us any bill (Local people) and not having PAN.
Should we deduct TDS for payments to such people or such purchases attracts any other tax ? If any other treatments is there kindly let me know.
Kindly reply
The suppliers wont supply us any bill (Local people) and not having PAN.
Should we deduct TDS for payments to such people or such purchases attracts any other tax ? If any other treatments is there kindly let me know.
Kindly reply
11 April 2013
The purchase transactions does not attract the provisions of TDS.
However, the provisions of Sec. 40A(3) regarding the restrictions on the payment in cash exceeding Rs. 20000/- in a day to the same person needs to be kept in mind.
Hence, avoid the paynment in cash and undertake the transactions through Account payee cheque or Bank draft.
However, the provisions of Sec. 40A(3) regarding the restrictions on the payment in cash exceeding Rs. 20000/- in a day to the same person needs to be kept in mind.
Hence, avoid the paynment in cash and undertake the transactions through Account payee cheque or Bank draft.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
