Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Plz help me

P.Mishra (Accountant) (155 Points)

02 October 2014

I want to know..can I make cash invoice or invoice to unregistered dealer greater than 20000. if no..whats the reason? plz reply...

Reply
Follow
Share

8 Replies

Sourav (Achieving d UnAchieved) (991 Points)
Replied 02 October 2014

As far as my knowledge is concerned u can make a cash invoice exceeding Rs 20,000/- Becoz of a simple reason is, if someone cums to you, you wont deny your sale just bcoz he is unregistered..... Limit of Rs 20,000 is on purchase.......but I am not sure..... Wait for comment from others......

Upgrade to CAclubindia Pro. Subscribe Now!

Suresh Kumar (Accountant) (31 Points)
Replied 02 October 2014

i agree with sourav

P.Mishra (Accountant) (155 Points)
Replied 02 October 2014

thanks sourav, bt I saw Many palace where bill amount less than 20000.

Tarun (AM) (216 Points)
Replied 03 October 2014

Boss .... 20000 concept is for disallowing If you make your sale invoice for more than Rs. 20000, Income tax would not disallow your sale as it is their loss only This limit is on expenses only...as it would increase your profit and tax if disallowed

Chitsimran Singh (Student CA Final ) (121 Points)
Replied 03 October 2014

The rule of allowance/disallowance is not applied to sale / purchase. We can make payment more 20000 on purchase of goods. Agreed with Tarun.

Upgrade to CAclubindia Pro. Subscribe Now!

Shalu (Article Trainee) (21 Points)
Replied 03 October 2014

If you are raising an invoice above 20000, it shall not be disallowed by the department, as it is a sale from your side. But the purchaser is not allowed to make payment beyond 20000. If he does, it shall be disallowed for tax purposes. Refer section 40A(3)with Rule 6DD for better clarification.