Cash reciept

Anmol (Querist) 25 February 2013 This query is : Resolved
I had given 15000 in cash and 10000 by cheque to somebody towards booking of a second hand car . What is the correct method of taking receiving for cash from someone .I had simply got it written from him on a plain paper the amount he had taken and towards what and his signature and address put down by him does it work the same ?

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ajay sethi (Expert) 25 February 2013
if person to whom you have advanced money had a letter head preferably take it on his letter head .he should have acknow ledge having received Rs 15,000 by cash and balance amount of rs 10,000 by cheque for prupose of booking the second hand car . in the vent he fails to deliver car within period of 1 month the said amount to be refunded with interest at 18%per annum .

RAJU O.F., (Expert) 25 February 2013
While purchase of second hand vehicle the previous owner has to execute a set of documents/ papers, which are readily available with driving schools/ vehicle dealers, which is inclusive of cash receipt and sale letter. Obtain the said documents signed by him on your payment and get the vehicle transferred in your name at RTO.

Anmol (Querist) 25 February 2013
Thank You !

c.p.s. ramachary (Expert) 25 February 2013
A receipt for cash ( for Rs.5,000 and above) must be obtained on a paper affixing revenue stamp worth Re.1/- according to latest amendment to Stamp Act. Hence it is advisable to obtain a receipt for Rs.15,000/- for cash payment as advised above. You can also include the payment particulars of Rs.10,000/-made by you through cheque in the same receipt.

prabhakar singh (Expert) 25 February 2013
I agree with the advise of Mr.c.p.s. ramachary.

If the receipt you have got is affixed with 1/=00 revenue stamp it is okay even on a plain paper.

If revenue stamp is not affixed,affix it without delay and get one more signature across it or get it crossed.

Take care of formalities Mr.RAJU O.F.,has spoken while car is being actually sold and being handed over to you.Sale letter & formats prescribed by M.V.Act/Rules,.