oppn parties Beware When Paying/Accepting Rs 2 Lakh or Above for Goods and Services

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  • Crude prices fall sharply as Saudi Arabia assures normal production in a few weeks. Prices fall by 5.4% to $65.30 per barrel
  • Sensex tumbles 700 points over fears that rising crude prices will deal a body blow to the tottering Indian economy
  • As Rajeev Kumar fails to appear before the CBI despite several notices, the agency forms a special team to locate and apprehend him
  • S Jaishankar says Pakistan is not a normal neighbour and its behaviour is a "set of aberrations"
  • External Affairs Minister S Jaishankar says PoK in Indian territory and the country hopes to have physical jurisdiction over it one day
  • Barasat Sessions court near Kolkata rejects Rajeev Kumar anticipatory bail application citing lack of jurisdiction as the reason
  • PM Modi celebrates his birthday with Narmada aarti and later has lunch with his mother.
  • All 6 Bahujan Samaj Party MLAs merge with the Congress in Rajasthan
  • Bengal CM Mamata Banerjee to meet PM Modi on Wednesday, state issues on the agenda
  • Pakistan to open Kartarpur corridor on Nov 9
  • Rajeev Kumar, ex-police commissioner of Kolkata and wanted for questioning in the Sarada scam does not appear before the CBI despite the state administration requesting him to do so
  • Supreme Court asks the Centre to restore normalcy in J&K but keeping national interest in mind
  • As Trump accepts the invitation to attend a programme in Houston with PM Modi, India rushes to settle trade issues with US
  • After drone attack on Aramco's Suadi Arabia facility, oil prices jump 19% in intra-day trading causing worries for India
  • Imran Khan raises nuclear war bogey again, says if Pakistan loses a conventional war, it might fight till the end with its nuclear arsenal
Sunni Wakf Board and Nirvani Akhara write to the Supreme Court for a negotiated settlement to the Ayodhya dispute
oppn parties
Beware When Paying/Accepting Rs 2 Lakh or Above for Goods and Services

By Ashwini Agarwal

Although BJP had made getting back black money stashed abroad one of its main election planks in the last general elections, after assuming power it has realized that much needs to be done to plug the loopholes that allow black money generation within the country. To its credit the government has been, slowly but surely, trying to zero in on such transactions.

Cash purchase above a certain amount during the normal course of trade is something that attracts immediate suspicion. Last year, the government had notified that quoting buyers’ PAN number was mandatory for all trade transactions where cash was paid in excess of Rs 200000 to buy goods or avail of services. This came into force on 1st January, 2016.

The Finance Minister has taken this a step forward in the budget this year by imposing a 1% tax to be collected on source on all such transactions. Only sale of vehicles (for which the threshold is Rs 10 lakh), sale or purchase of bullion and gem and jewelry and other transaction over Rs 2 lakh in cash where TDS is already deducted have been left out of the ambit. Section 206C of the I.T.Act has been amended for the purpose. This will come into force on 1st June 2016.