Beware of Cash Transactions from April 1
Beware of Cash Transactions From April 1, 2017, be careful while accepting cash for more than Rs 2,00,000/- or pay 100% penalty for accepting it. Remember, it is the cash receiver who needs to pay the penalty and not the cash payer. It is a move towards eliminating cash transactions and shift towards cashless economy.
Let CA In Delhi tell you what constitutes. Violation in Beware of Cash Transactions is as follow:
???? If u accept Rs.- 2L or more from same person *in a day* even against different bills.
???? If u accept Rs 2L or more from a person *against one bill* even on different days.
???? If u accept Rs 2L or more from a person for a series of transactions emanating from *one event or occassion*.
Examples:
???? If one sells goods worth Rs 450000 through three different bills of 150000 each to one person and accepts *cash in single day* at different times then section 269 ST(a) will get violated.
???? If one sells goods worth Rs 400000 through *single bill* to Another person and receives cash of 100000 on day 1 and another 300000 on day 2 then section 269 ST(b) will get violated.
???? If A accepts cash of 100000 for *catering*, Rs 150000 for *decoration*, and rs 150000 for tent house work then section 269 ST(c) will get violated even if cash is accepted on different dates.
Above provisions are not applicable to
a) The government
b) Any banking company, post office savings bank, or cooperative society
c) Transactions of the nature referred to in section 269SS (accepting loans or advances for Rs 20,000 or more in cash).
Exact text of section 269ST:
” No person shall receive an amount of two lakh rupees or more,—
(a) in aggregate from a person in a day;
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.
It is further proposed to provide that the said restriction shall not apply to Government, any banking company, post office savings bank or co-operative bank. Further, it is proposed that such other persons or class of persons or receipts may be notified by the Central Government, for reasons to be recorded in writing, on whom the proposed restriction on cash transactions shall not apply.
Transactions of the nature referred to in section 269SS are proposed to be excluded from the scope of the said section.
It is also proposed to insert new section 271DA in the Act to provide for levy of penalty on a person who receives a sum in contravention of the provisions of the proposed section 269ST. The penalty is proposed to be a sum equal to the amount of such receipt. The said penalty shall however not be levied if the person proves that there were good and sufficient reasons for such contravention. It is also proposed that any such penalty shall be levied by the Joint Commissioner.
Hence, penalty for Violation is 100% of cash received!
Google Reviews
