UNION BUDGET UPDATES 2017 - No Cash, Go Digital

UNION BUDGET UPDATES 2017

Section 269ST in the Act provide that -- no person shall receive an amount of three lakh rupees or more,

(a) in aggregate from a person in a day; or

(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.

Note: 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.

These amendments will take effect from 1st April, 2017. BE PREPARE IN ADVANCE.

Examples of the above amendment on transactions:

1. If one sells goods worth Rs.4,50,000 through three different bills of Rs.1,50,000 each to one person and accepts cash in single day at different times then section 269ST(a) will get violated.

2. If one sells goods worth Rs.4,00,000 through single bill to another person and receives cash of Rs.2,00,000 on Day-1 and another Rs.2,00,000 on Day-2 then section 269ST(b) will get violated.

3. If A accepts cash of Rs.1,00,000 for catering; Rs.1,50,000 for decoration and Rs.1,50,000 for tent house work then section 269ST(c) will get violated even if cash is accepted on different dates.

Penalty for Violation being 100% of cash received!

For more details, feel free to contact us at mrtandassociates@gmail.com

Regards, CA Rahul Gupta

(Practicing Chartered Accountants)
M R T & Associates, Chartered Accountants