watch_later 13/01/18

Sir, The article regarding Cash Transactions for IT was very informative and in an easy to understand language. I need your clarification regarding: Purchased Fixed assets with cash exceeding Rs. 10,000.

When we buy Computers, we find that stores in SP Road, Bangalore offer systems at prices lower than Dealers or Consultants. However the stores accept Cash, as they do not trade in Credit since their customers are more of walk-in. They will issue Original Tax Invoice for the full value including GST Etc. As per the section mentioned in your article, will it be advised not to purchase from such stores by Cash?

1 Response | Latest response: 13/01/18 | Sort by Likes(thumb_up) Recent | Income-Tax Reply
watch_later 13/01/18

Yes, it is advised that you do not purchase with cash exceeding 10,000.

If you purchase fixed assets worth more than 10,000 then cash amount will not be added to cost of your asset and you will not get benefits of depreciation.

We have to understand the intention of government and follow the rules accordingly. You can use Debit Card, or Credit card if they do not accept cash.


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