limit of cash for debtor and creditor
Kollipara Sundaraiah (B.com) (2963 Points)
27 July 2019
amount received cash from old debtor and paid cash to creditor limit for one day.
Kollipara Sundaraiah (B.com) (2963 Points)
27 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 27 July 2019
1. The only restriction placed in transacting in cash with respect to receipt is under sec 269ST. No person shall transact in a day exceeding Rs. 2 lakhs in cash in a single day to the same person relating to one event.
2. So sec 269ST puts restriction to receive in cash from a person in a single day.
3. Make sure the amount received from the debtor is less than Rs. 2 lakhs.
4. With respect to the payment to creditors, it should not exceed Rs. 10,000 per day in cash as per sec 40A(3).
5. So payment to creditors should not exceed Rs. 10,000 in cash. Otherwise, disallowance of such payment will be attracted while computing profit.
6. Penalty would be levied u/s 271DA equal to the amount of contravention u/s 269ST.
Please correct me if the above solution has an alternative view.
RAJA P M
("Do the Right Thing...!!!")
(128029 Points)
Replied 27 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 27 July 2019
1. As long as per day transaction does not exceed Rs. 2 lakhs sec 269ST will not come into operation.
2. Per year, I don’t think there is no limit for a cash transaction. As long as sec 269ST is not violated.
Kollipara Sundaraiah
(B.com)
(2963 Points)
Replied 02 August 2019
RAJA P M
("Do the Right Thing...!!!")
(128029 Points)
Replied 02 August 2019
Kollipara Sundaraiah
(B.com)
(2963 Points)
Replied 02 August 2019
Kollipara Sundaraiah
(B.com)
(2963 Points)
Replied 02 August 2019
Prachi Bansal
(3129 Points)
Replied 13 April 2021
If I take a loan from my relatives or family members in the course of my business what will it be shown as under the balance sheet?
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
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