An assessee engaged in online business can accept terminal deposit above Rs. 20000/- in cash for computer terminals provided to customers. Whether there is breach of section 269ss which says that any deposit above Rs. 20000/- should be through accout payee cheque or draft.
2 Replies
Rajagopalakrishnan R
(PARTNER)
(1422 Points)
Replied 13 September 2011
Yes, 269 SS would definitely apply. Why should u accept deposits by cash in any case. On what basis are u claiming for any differential treatment is not clear from ur query
CA Anand
(CEO)
(48 Points)
Replied 14 September 2011
Dear Rajagopalkrishnan,
In this case the assessee is accepting terminal deposit for security of terminals provided to customers. It in not in nature of loans. Further terminal deposit is also accepted for any debit balance of customer if remaines unpaid. Electricity distribution companies also accept such deposits from their customers in cash exceeding Rs. 20,000/-.
Thanks in advance for ur reply
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