In the course of the sale of a car valued above Rs.10 lacs, i am obliged to collect TCS @ 1%. In the course of receiving payments from the customer, i receive a payment in cash in excess of Rs.2 lacs. Is that permitted as i have have charged TCS on the whole transaction, or i should not collect cash at all?
27 July 2022
No, you cannot collect cash of Rs. 2 lakhs or more under any circumstances.
Section 269ST of IT act prohibits any person to receive an amount of Rs.2 lakh and above in cash: In aggregate from a person in a day, or In a single transaction, or In respect of transactions relating to one event or occasion from a person.
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