Cash payment

Tax queries 192 views 2 replies

ACCOUNTANT

66 Points Joined March 2012

Dear All Expert

I hv purchased the cloth Rs 51.0 0 lac from my buyer by multiple bills each bills above Rs 2 lacs.

So my query is this can I pay the payment in cash against each translation Rs 2 lac.

Suppose I paid Rs 10 lacs against 5 transaction to my supplier will not it be violation of 269 st or it is permissible.

Regards

Replies (2)

Studwnt

1141 Points Joined February 2016

Cash payment exceeding 10k is not permissable further it needs to be reported under various sections.

12244 Points Joined May 2017

269ST applicable in the hands of receiver. in your case section 40A (3) will attract which prohibits payment in cash exceeding 10k

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