A trading concern purchases menthol from farmers and sells it further to other business concerns.
My question is how much cash purchase can the firm do with the farmers?
Is there any limit ?
A trading concern purchases menthol from farmers and sells it further to other business concerns.
My question is how much cash purchase can the firm do with the farmers?
Is there any limit ?
As per exemption provided vide clause 5 of Rule 6DD, you can pay cash amount to farmers for cash purchase without attracting section 40A(3).
But farmers are not spared from section 269ST applicable from April, 2017; whereby any cash purchase upto 1.99 lakhs per day per transaction can be made without any litigation.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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O P Bagla & Co LLP
New Delhi
CA Inter
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