Cash payment more then rs.20000

This query is : Resolved

GUDLA SAI PRASAD (Querist)
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03 June 2013 Cash Paid To Electricity Dept. For Electricity Consumption For The Month Was Rs. 1 Lakh Was Inadmissible U/s 40A(3)Or Not

CA Kapil Verma

CA Kapil Verma (Expert)
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03 June 2013 Any cash payment to Government Department with proper evidence i.e Receipt of Payment is allowed as per Rule 6DD of Income Tax act.

Ganeshbabu K

Ganeshbabu K (Expert)
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03 June 2013 AS PER RULE 6DD , ANY PAYMENT MADE TO GOVERNMENT IS ALLOWED.

SO IT IS ADMISSABLE EXPENDITURE

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 June 2013 Payment to the Electricity Board when it exceeds Rs.20,000/- by cash may mean disallowance of such payment for the payer as it does not come under any of the exceptions, since Electricity Board being a creation of a special Act and it is not Government, though it could be treated as Government company.

However , a contrary view has been taken by Ahamedabad Tribunal (in the case of Triveni....Pvt Ltd)wherein the bench said payment to State Electricity Board is considered as one of the undertaking of the State Government. Therefore, it was considered to be a payment made to Government body and is falling in the exception.
Citation :- Not readily available.

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Ganeshbabu K

Ganeshbabu K (Expert)
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03 June 2013 Dear sir,

just because electricity board is registered under companies act 1956, can we say it is disallowable

and please let me know exact logic behind non applicability of tds on electricity charges

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