Cash payment

308 views
User Avatar

ACCOUNTANT
40 Points Posted on 31 January 2020

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

0 Reply Share Follow Topic
On 31 January 2020 at 18:57 Report
Replies (2)
Quick Summary
This discussion clarifies the legality of making cash payments exceeding Rs 2 lakhs. It explains that such payments are generally not permissible under Indian tax laws, specifically referencing Section 269ST which applies to the receiver and Section 40A(3) which prohibits cash payments over Rs 10,000. Violating these sections can lead to penalties.

User Avatar

Studwnt
730 Points Posted on 31 January 2020
Cash payment exceeding 10k is not permissable further it needs to be reported under various sections.
Reply
On 31 January 2020 at 19:31
User Avatar

5751 Points Posted on 01 February 2020
269ST applicable in the hands of receiver. in your case section 40A (3) will attract which prohibits payment in cash exceeding 10k
Reply
On 01 February 2020 at 01:35

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
  2. 70:30 GST rule for solar EPC: partial scope (struc
  3. TDS on Redevelopers hardship allowance received no
  4. Who will take FSSAI AND TRADE LICENSE: owner or te
  5. E Way Bill in respect of Without Bringing Material
  6. FAST DS 2026 query
  7. Consultation
  8. E-way notices for FY 22-23
  9. Gst file not created
  10. Regarding 3CEB query

More recent discussions | Post

Related Topics :

Loading

Latest Job Openings

View all
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details