any one can help me out......
I am involve in a business where i have to do local purchase of paddy , rice.wheat, other crops. and export it to nepal.
Now from where i am buying thise rice they want the payment in cash , they dint want the money by cheaqe or d/d..
cost of 20 ton of rice ia arround 3 lacs... can any one help me how to make the payment to them in cash fulfiling income tax act and sustain my business . any alternate way
thank you
Dear Mr. Sujeet,
If you are paying Rs.300000/- by cash to local purchase.
Kindly make Rs.15000* 20 Vouchers ( So, you will be escape from Income Tax perspective).
So,even scrutiny / audit they won't question you.
Rule 6DD : (f)
where the payment is made for the purchase of—
(i) agricultural or forest produce ; or
(ii) the produce of animal husbandry (including hides and skins) or dairy or poultry farming ; or
(iii) fish or fish products ; or
(iv) the products of horticulture or apiculture,
to the cultivator, grower or producer of such articles, produce or products;
CAclubindia
