The Single Purchase Invoice allowed limit to pay in Cash under Sales Tax Act is Rs. 50,000. This means that no person can purchase goods or services from a registered person for a total value of more than Rs. 50,000 in cash. If a person does so, they will be liable to pay a penalty of Rs. 10,000.
The purpose of this limit is to prevent tax evasion. By limiting the amount of cash that can be used to purchase goods or services, the government is making it more difficult for people to avoid paying taxes.
There are a few exceptions to the cash limit. For example, the limit does not apply to:
- Purchases made by the government or a government department
- Purchases made by a person who is not registered for sales tax
- Purchases of goods or services that are exempt from sales tax
If you are unsure whether or not you are allowed to pay for a purchase in cash, you should contact the Federal Board of Revenue (FBR).
Here are some tips for avoiding the penalty for paying more than Rs. 50,000 in cash for a single purchase:
- Pay for your purchase with a credit or debit card.
- Pay for your purchase with a check or money order.
- Pay for your purchase in installments.
- Contact the seller and ask if they will accept a lower amount of cash.
By following these tips, you can avoid the penalty for paying more than Rs. 50,000 in cash for a single purchase.