04 December 2014
Dear Sandeep, RTGS will be accepted by bank only against cheque & corresponding letter received from customer of bank. As per act A/c payee or A/c payee draft or NEFT all of these modes the customer can write/inform the name of the receiver. All the payments will be completed through bank only. In the case of RTGS, customer should give cheque and list of persons to whom the payment should be done to the bank. Then only bank will transfer the funds through RTGS mode. Indirectly all payments are made through account payee cheque only. Then payment made through RTGS is an allowable mode. There no disallowance U/s. 40A(3) if payments made by using RTGS mode.
04 December 2014
Dear Mr. Sampat you have serious misunderstanding of Section 40A(3) and rule 6DD.
After the amendment to Sec.40A(3) by the Finance Act, 2008, following exceptional circumstances have been prescribed under Rule 6DD vide Notification No. S.O. 2431(E), dated 10th Oct., 2008- applicable with effect from A.Y. 2009-10. No disallowance under sub-sec (3) of sec. 40A shall be made and no payment shall be deemed to be the profit and gains of business or profession under sub-sec. (3A) of sec.40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account-payee cheque drawn on a bank or account-payee bank draft exceeds Rs. 20,000 in the cases and circumstances specified hereunder, namely : Where the payment is made by: i. any letter of credit arrangements through a bank; ii. a mail or telegraphic transfer through a bank; iii. a book adjustment from any account in a bank to any other account in that or any other bank; iv. a bill of exchange made payable only to a bank; v. the use of electronic clearing system through a bank account; vi. a credit card; vii. a debit card
And payment through RTGS comes with scope by electronic means as per definition provided by RBI. See the below link. http://www.rbi.org.in/scripts/FAQView.aspx?Id=65
Therefore, it will allowed in all cases irrespective of amount
CAclubindia
