Not known Factual Statements About 86 cash

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Possessing reported this, it may be argued in this type of problem, there was no avoidance of any tax legal responsibility. Therefore, there isn't any amount of money payable to The federal government. Thereby, there can't be any issue of any tax legal responsibility or curiosity or penalty payable on the contravention of this provision.

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As a result of this short article, the author purports to investigate the provisions and its useful implications by answering the most commonly asked questions referring to this rule.

♦ Due to the fact one% payment by cash is to be checked in “current” FY as a result, during the thirty day period of April of any economic yr [staying the 1st thirty day period], this proviso won't be relevant.

e. RCM liability shall be discharged ONLY using e-cash ledger. Hence, utilization of ITC to discharge RCM legal responsibility just isn't allowed in the slightest degree, Therefore the concern of imposing this kind of restriction shall not arise

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Ans. Smaller taxpayers having a lot less than Rs. fifty lakhs well worth of taxable provides wouldn't get included. Also, through the exceptions talked about higher than, the majority of the authentic taxpayers are eradicated within the ambit of the rule.

Ans. There are actually many entities all over India which engage in phony invoicing i.e. concern of invoices with out actual supply of goods and / or expert services. These entities have a tendency only to obtain credit score and go on credit score to other entities with out generating any payment of taxes in cash.

My issue is my ITC is fewer than Rs.1 Lac, I compensated comprehensive tax payment working with ITC as higher level of tax was compensated to Customs. New registration under GST, even now I ought to fork out 1% GST via Cash or There's any way This may be safeguarded.

d) The registered individual has discharged his liability in the direction of output tax through electronic cash ledger in surplus of 1% of whole output tax legal responsibility used cumulatively upto the explained thirty day period in the current fiscal calendar year

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Alternatively, If your turnover is lower than Rs. six crores inside of a monetary yr although the taxable materials for virtually any thirty day period exceeds Rs. fifty lakhs, then Rule 86B stands captivated.

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