Income tax

This query is : Resolved

vijay kumar (Querist)
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18 October 2012 Dear Sir,

I want to know that cst deposit more than 50000/- through cash is allowable under Income tax act.

Thanks,

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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18 October 2012 exceptions to rule 40A(3)i.e cash payment allowed in excess of 20000

Payment to Government Rule 6DD(b)- Where payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender..

so as per my knowledge goes,the expense of rs 50000 would be dissalloed

SANJAY TALATI

SANJAY TALATI (Expert)
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19 October 2012 payment of Direct taxes, costoms duty , excise duty, railway freight , sales tax etc. are falling under the exceptions provided under sec. 6DD(b).

Hence, even if the sales tax is paid in cash exceeding Rs. 20000/-, the same would not be disallowed under sec. 40A(3).

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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19 October 2012 @sanjay--i m doubtful whether there is any such provision in rule 6dd..can u quote or send the link

SANJAY TALATI

SANJAY TALATI (Expert)
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22 October 2012 Payment of freight charges/booking of wagons to railways and payment of sales tax/excise duty are covered by the exception to Sec. 40A (3) disallowing the payment in cash exceeding rs. 20000/-. Circular no. 34 dtd. 05/03/1970

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