The Central Board of Direct Taxes (CBDT) on December 30, 2022, issued Clarification for the purposes of clause (c) of Section 269ST of the Income-tax Act, 1961 in respect of dealership/distributorship contracts in case of Co-operative Societies.
The following has been stated namely: -
• It is clarified that in respect of Co-operative Societies, a dealership/distributorship contract by itself may not constitute an event or occasion for the purposes of clause (c) of Section 269ST. Receipt related to such a dealership/distributorship contract by the Co-operative Society on any day in a previous year, which is within 'the prescribed limit' and complies with clause (a) as well as clause (b) of Section 269ST, may not be aggregated across multiple days for purposes of clause (c) of Section 269ST for that previous year.
• Section 269ST inter-alia prohibits the receipt of an amount of two lakh rupees or more by a person, in the circumstances specified therein, through modes other than by way of an account payee cheque or an account payee bank draft or use of an electronic clearing system through a bank account or through such other electronic mode as may be prescribed.
[Notification No. 25/2022]
