Cash receipt prohibition limits large cash sales by cultivators; smaller cash sales avoid disallowance and PAN/Form60 obligations. Payments by traders in cash to cultivators for agricultural produce are excluded from the general disallowance that applies to payments made otherwise than by account payee cheque/draft or electronic transfer, by virtue of the rule that carves out purchases from cultivators. However, a statutory prohibition restricts large cash receipts by cultivators unless received by cheque/draft or electronic transfer; PAN/Form 60 quoting requirements do not apply to sale transactions at or below the statutory threshold. Cash sales below that threshold do not cause disallowance, do not attract the cash receipt prohibition, and do not require PAN/Form 60.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cash receipt prohibition limits large cash sales by cultivators; smaller cash sales avoid disallowance and PAN/Form60 obligations.
Payments by traders in cash to cultivators for agricultural produce are excluded from the general disallowance that applies to payments made otherwise than by account payee cheque/draft or electronic transfer, by virtue of the rule that carves out purchases from cultivators. However, a statutory prohibition restricts large cash receipts by cultivators unless received by cheque/draft or electronic transfer; PAN/Form 60 quoting requirements do not apply to sale transactions at or below the statutory threshold. Cash sales below that threshold do not cause disallowance, do not attract the cash receipt prohibition, and do not require PAN/Form 60.
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