- Recently, the Indian government has proposed new section 269ST in
the Income Tax
Act, 1961 as per the Finance Bill,
2017 whereby any cash receipt in excess of Rupees One Lakh
Ninety Thousands Only (
₹1,90,000 ) in a day will be liable for equal penalty in
the hands of the recipient. In view of the above amendment, the
Company hereby notifies all its Associates to strictly follow the
following guidelines while carrying out monetary transactions
with the Company .
- No Individual/ entity will deposit any cash into the
Company's Bank account unless he/ she/ it meets all of the
following conditions:
- The Associate will not use the Permanent Account Number
of the Company;
- The Associate will provide the Permanent Account Number
along with self-attested copy of the Permanent Account Number
relevant to the deposit i.e., His/ Her/ Its Permanent Account
Number or Permanent Account Number of ultimate customer;
- The Associate will not do cash deposit of Rupees One
Lakh Ninety Thousands Only (₹1,90,000)
or more:
- in aggregate from a person in a day;
- in respect of a single transaction; or
- in respect of transactions relating to one event or
occasion from a person
- Any deviation from the above guidelines will be taken
seriously and can result inter-alia in termination of the Agency
contract, impounding of any cash/ money so
deposited by the Associate without any further intimation/ action
needed from the Company.
- The Associate understands and acknowledges that the
Company is entitled to information with regard to source of any
monies being deposited in the Bank Account of the Company and the
Associate shall, upon demand, without demur or dispute, inform
the Company of any such source of monies.
- It is intimated that from immediate effect that all cash
deposits made by The Associate in the Bank Account of the
Company, will not be credited to the FRAG/FRAN
ID/FRAG Account maintained by the Company for The Associate and
will be kept in a suspense account of the bank with which such
cash deposit is done by The Associate till such time the Company
is satisfied of the adherence of the above guidelines by The
Associate.
- Further, if any Associate is found in contravention of
depositing the cash deposit in excess of the above limit,
his/her/its
FRAG/FRAN ID/FRAG Account will be suspended till the written
explanation in satisfaction of the Compan's management is
provided and the Company will have right to impound the cash so
deposited.
- The Associate hereby unconditionally indemnifies the
Company from any action taken by any government
agency (including Tax department) in the event of non-compliance
of any relevant law by The Associate.
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