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23
December 2016
On
the requirement for reporting cash payments exceeding Rs 2 lakh for sale of
goods or services, the government on Friday clarified that the rule applies
only to single transactions, which are not required to be aggregated for the
purpose. The Total Investment & Insurance
Solutions
The
Central Board of Direct Taxes (CBDT) has clarified that reporting requirements
as per the rules are applicable when a single transaction involves receipt of
cash payment exceeding Rs2 lakh for sale of goods or services, signifying that
no aggregation is required, a Union Finance Ministry release here said. The Total Investment & Insurance Solutions
"Any
person who is liable for audit under section 44AB of the Income-Tax Act, 1961,
is required to furnish a statement in respect of transaction relating to
receipt of cash payment exceeding Rs 2 lakh for sale of goods or service,"
it said. The Total Investment & Insurance
Solutions
"Doubts
were raised if such transactions are required to be aggregated for reporting.
"CBDT
has clearly indicated that the said transactions did not require aggregation
and the reporting requirement under SFT (Statement of Financial Transactions)
for this purpose is on receipt of cash payment exceeding Rupees Two Lakh for
sale of goods or services per transaction," it added.The Total Investment & Insurance Solutions
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