Cash Sale limit in FY 2017-2018
NITIN SABOO (344 Points)
08 October 2017
Can we issue cash Sale invoice above 10000 to single person and what is maximum cash Sale limit against one invoice.
NITIN SABOO (344 Points)
08 October 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166341 Points)
Replied 08 October 2017
Yes, You can issue cash bill upto 2 lakhs limit (single or in aggregate), per day per person, provided the purchaser is not a trader.......
NITIN SABOO
(344 Points)
Replied 08 October 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166341 Points)
Replied 08 October 2017
Limit for any businessman to purchase in cash is upto Rs. 10,000/- per bill. (as per section 40A(3) of IT act).
In case, purchaser insists for cash purchase, you can sell upto 2 lakhs in cash.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166341 Points)
Replied 08 October 2017
Unless he declares his income under section 44AD, the cash expenses/purchases above Rs. 10,000/- per day are disallowed thus the amount is added back in his profits and taxed accordingly.
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 08 October 2017
Dear Sir.,
In case a bill is Rs. 50000. Cash received Rs. 10000 * 5days.
This condition the above said rule applicable or not...?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166341 Points)
Replied 08 October 2017
It will be disallowed.......... as single event......
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 08 October 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166341 Points)
Replied 08 October 2017
Under GST no such rules......
Under IT Act......... the limit recently reduced to 10K from earlier 20K........
Under section 44AD......... no such rules applicable........ assessment based on turnover only......
Others unaware of any such rules....... escape its applicability, only untill file opened under scrutiny!!!
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 08 October 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166341 Points)
Replied 08 October 2017
Auditor cannot escape such rules.
Under the section...... the expenses are disallowed by ITO and the amount is added back to P&L account....... thus taxed additionally with interest, but not penalized otherwise....
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 08 October 2017
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
