269ST, TCS applicable or not in our business ???????

Tax queries 275 views 2 replies

ANSAD

TRAINEE

109 Points Joined December 2011

Respected forum experts,

We are FMCG manufacturing and trading firm. We sell goods in open market through mini vehicles, 85% of our sales turnover in a year are cash transactions. Majority of our customers are buying more than 2 lacs (various day and bills) in a year.

If we collect these amounts in cash in different days.

Question 1: 269ST applicable or not?

2: TCS (1%) applicable or not?

3: Can we collect cash above Rs. 10,000/- from customers in a day towards sales?

Please clarify these doubts as early as possible.

with regards

Ansad. P

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208759 Points Joined July 2016

1. " Majority of our customers are buying more than 2 lacs (various day and bills) in a year. " Sec 269ST not attracted.

2. No

3. Yes, but retailer will not be allowed the cash purchase!! Better to accept cheques.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

14043 Points Joined June 2009

1. As long as bills are different and paid on different dates and none of them equals or more than Rs 2 Lakhs section 269ST not applicable.

2. TCS of 1% no longer applicable.

3. Cash expenditure limit of 10000/- is applicable for payers only u/s 40A(3) and not to the payee. But if payers are claiming the expenses of purchase in P&L account then any payment in cash exceeding Rs 10000/- shall be disallowed to them.