Purchase voucher & sale bill for income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2013 one of my friend doing a potato business in local area he is not get TIN number from department,he selling to farmer and purchases from other state not maintain tax invoice for purchases instead of vouchers to kept for account and nearly one crore transaction in the bank account. what is the solutions for income tax filing for purchase bill.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 December 2013 For income Tax purpose, nearly one crore can if be understood as less than one crore than on the basis of purchase vouchers also he can go ahead for filing his income tax return. He can file his return U/s 44AD, on the basis of his Sales Bills also.
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If the vendors from whom he purchased the goods are identifiable and the purchase vouchers are genuine having the signature of the vendors, these are as good as Invoices.
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In case turnover exceeds one crore, please also ensure that cash payment exceeding Rs. 20000/- against a single voucher in a single day should have not been made.
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In other words, if he has made payment by Account Payee cheques against the vouchers, he can treat these vouchers as good as his purchase bills.
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