CASH PAYMENTS OVER RS 2 LAKH   , MEIS WITHDRAWAL  & STAMP PAPER DO NOT HAVE EXPIRY PERIOD -SC
Channel: R V Seckar
Date: 2020-09-03

CASH PAYMENTS OVER RS 2 LAKH   , MEIS WITHDRAWAL  & STAMP PAPER DO NOT HAVE EXPIRY PERIOD -SC
PENALTY ON RECEIPT OF AN AMOUNT OF RS. 2 LAKH OR MORE IN CASH UNDER INCOME -TAX ACT ,1961 
IF YOU RECEIVE RS 2 LAKH IN CASH , YOU HAVE TO PAY PENALTY UNDER IT ACT, WITHDRAWL OF MEIS SCHEME & STAMP PAPERS DO NOT HAVE ANY EXPIRY PERIOD- SAYS SC

Section 269ST (as inserted by the Finance Act, 2017 with effect from 1/4/2017) provides that no person shall receive an amount of Rs. 2,00,000 or more,
(a) In aggregate from a person in a day;
[As amended by Finance Act, 2020]
(b) In respect of a single transaction; or
(c) In respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, or through such other electronic mode as may be prescribed.
However, the said restriction shall not apply to Government, any banking company, post office savings bank, co-operative bank or a person notified by the Central Government.

Penalty for Contravention
Section 271DA provides for levy of penalty on a person who receives a sum in contravention of the provisions of section 269ST. The penalty shall be equal to the amount of such receipt. However, the penalty shall not be levied if the person proves that there were good and sufficient reasons for such contravention
Example:
X organizes a marriage reception in a star hotel and the hotel charges him a bill of Rs 5 Lakh. X clears the bill in 5 installments of Rs 1 Lakh each on four different dates. Here, the cash receipts got by hotel are less than Rs 2 Lakh received on different dates but it is related to a single bill/ single transaction. Here, Hotel will be liable for the penalty of Rs 5 Lakhs. So, splitting of payments over several days will also attract penalty.
MEIS SCHEME INCENTIVE IS WITHDRAWN AGAINST THE EXPORTS MADE FROM 01 JANUARY 2021
MEIS SCHEME ( DGFT ): MERCHANDISE EXPORT FROM INDIA SCHEME
What is MEIS Scheme ?
More than 4000 items of exports are eligible to get benefit under MEIS DGFT. Under MEIS Scrips shall be granted as rewards. The value of the scrips is 2% to 5% of the FOB value of goods exported. The Scrips shall be freely transferable against goods imported / domestically procured. First time exporters from SEZ are also covered under this initiative.
Objective of MEIS Scheme DGFT
Merchandise Exports from India Scheme (MEIS) Aims to offset infrastructural inefficiencies and associated costs involved in export of goods or products produced as well as manufactured in the country, especially products of high export intensity, employment potential and to improve India’s export competitiveness in the world market. Under Merchandise Exports from India Scheme, GOI provides up to 5% incentives to exporters.
Following are the main features of MEIS scrip:
They are issued to exporters
The scrip allows duty deduction (non-payment of taxes) of a specified amount in the scrip. The scrip value or the amount of tax deduction will be specified in the scrip.
The scrip value or tax reduction is expressed as a percentage of export turnover of the exporter.
The scrip value usually varies between 3 per cent to 5 per cent under Foreign Trade Policy 2015.
What is Duty Credit scrip?
Duty Credit scrips are scrips given to exporters as “incentives” by the Government of India. Through Merchandise Exports from India Scheme (MEIS Scheme) scrips are given for goods exports and through Service Exports from India Scheme (SEIS Scheme)scrips are given for services exports
Recent Amendment
MEIS incentive is withdrawn against the exports made from 01 January 2021
- MEIS incentive against exports made between 01 September 2020 and 31 December 2020 is limited to 2 Crores per IEC subject following additional conditions

1. No MEIS incentive for exporters registered for IEC after 01 September 2020
2. No MEIS incentive for exporters who have not made exports during one year preceding 01 September 2020
3. The MEIS incentive may be subject to downward revision of the incentives claimed crosses allocated budget of 5000 crores
4.Benefit of MEIS for exports for the period from 01.09.2020 to 31.12.2020 is restricted to Rs. 2 crores per IEC. 
5- Benefit of MEIS is not eligible to IEC holder who did not do any export during the period from 01.09.2019 to 31.08.2020 as well as new IEC holder who registered after 01.09.2020. 
6- Benefit of MEIS is not eligible with effect from 01.01.2021   
NON JUDICIAL STAMP PAPER DON’T HAVE ANY EXPIRY PERIOD: SUPREME COURT
Citation: Thiruvengada Pillai Vs Navaneethammal and Anr.

Judgment: According to a Supreme Court judgment dated 19/02/2008 in the case of Thiruvengada Pillai Vs Navaneethammal and Anr, the stamp papers do not have any expiry period. Relevant extract from SC Judgment is reproduced herein below:

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