According to amendment for CASH PAYMENTS EXCEEDING 10000 u/s 40(A)3, is it applied on cash sales? Many of our clients have a retail counter Most article costs more than 10000/-, they can't be sold in cash? Customers here are not paying through electronic mode or cheque, they insist to accept cash. If they say they accept more than 10000/- cash customer says they ll buy from somewhere else. This is affecting business very much. Please explain provision and any way out.
11 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177972 Points)
Replied 24 March 2017
No it will not be applicable for cash sales..........
..................where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, the disallowance of such expenditure shall be made under the proposed sub-section (3) of section 40A or the payment shall be deemed to be the profits and gains of business or profession under the proposed sub-section (3A) of section 40A,as the case may be.
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 24 March 2017
First of All Section 40A(3) is applicable on cash payment not on cash receipt. Hence you can accept sale proceed in cash too.
Second Thing Limit of 10000 is applicable from 01.04.2017 as it is amended by finance act 2017. Present limit is 20000.
RAKSHIT MEHTA
(tax consultant)
(114 Points)
Replied 24 March 2017
sir till what extent can he accept cash on sale in a single bill?
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 24 March 2017
Rs. 200000 from 01.04.2017 under section 269ST
varsha naik
(Chartered Accountant)
(303 Points)
Replied 24 March 2017
-For 40(A)(3) Payments upto f.y 2016-17 limit is Rs. 20000.
-Rs 10000 limit applicable from 1.4.2017
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 26 March 2017
Agree with the above view. It is a disallowance of expensiture section only. Doest not apply to cash sales
Jasvinder Singh
(3 Points)
Replied 18 August 2017
I HAVE QUESTION WE CAN ISSUE 10 BILL 190000 RS. ( FROM DIFFRENCT DATE ) ONLY ONE PERSON
EXAMPLE I SELLER AND SHYAM IS PURCHASERE THAN I ISSUE BILL ( DIFFRENCT DATE , DIFFRENT AMOUNT BUT PERSON SAME)
BILL NO. 10 DATE 15-04-2017 AMOUNT 195000
BILL NO. 20 DATE 25-04-2017 AMOUNT 190000
BILL NO. 25 DATE 26-04-2017 AMOUNT 194000
BILL NO. 30 DATE 30-04-2017 AMOUNT 1950000
IT IS IMPOSIBLE I CAN ISSUE BILL AND RECEIVED AMOUNT
Prasidh Narayan Tiwari
(self Emplyeed)
(23 Points)
Replied 23 October 2017
Dear All
can i sell of amount more then two lac in a day to diffrant person
Lokesh Panjwani
(Practice)
(2 Points)
Replied 14 November 2017
Cash Sales exceeding Two lakhs (in aggregate) in a single Day to various Persons is allowed.
Recent Topics
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
Related Threads
CAclubindia
