subham jagota (18 Points)
04 June 2023I want to know how much cash payment can be made to interstate farmers for purchase of agriproduce?
subham jagota
(18 Points)
Replied 04 June 2023
Is 2 lakhs per day limit, or i can pay to multiple farmers following 2 lakhs per day limit payment to single farmer.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 04 June 2023
Its per farmer per day per event... Less then 2 lakhs can be given in cash.
Section 269ST prohibits any person to receive an amount of Rs.2 lakh and above in cash:
This section will not apply to-
However there is a exception to section 271DA; According to section 271DA if person proves that there were good and sufficient reasons for contravention of section 269ST then no person shall be liable.
However, in case you are making payment of/above 2,00,000 to any farmer, Provisions of new Section 269ST will be applicable and Penalty can be levied on farmer for accepting payment above 2,00,000 in cash since no exemption is given to farmers under Section 269ST. (refer: Circular No. 27/2017 Dated 3rd November 2017)
rama krishnan
(12239 Points)
Replied 04 June 2023
CAclubindia
