Payment of 20000 u/s 43A rule 6DD

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2010 Payment made in cash for Inspection more that 20000 in cash name of the company is
"maharashtra state electricity distribution company" whill it be cover under payment to state government

CA. Aryendra

CA. Aryendra (Expert)
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25 November 2010 Correct Section is 40 A (3)

w.e.f. 1.10.2009 limit exceed from 20000 to 35000. it should be fall in payemnt made to government company

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2010 I understand this is for Plying, hiring or leasing of good carrier. it is for PSU also

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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25 November 2010 i won't think payment to maharashtra state electricity distribution company will fall under exception specified in Rule 6DD

It will attract section 40A(3) hence disallowed.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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25 November 2010 I opinion, payment made to the above entity will attract 100% disallowance.

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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26 November 2010 The increase in limit frim Rs.20000/-to Rs 35000/- is only towards to Plying, hiring or leasing of good carrier & for all other transaction it is retained at Rs.20000/- only.

What tpye of inspection do MSEDC does ?

Whether they dont accept cheques?
In my opinion, Under Rule 6DD, as this not covered, provision of Sec 40(A)(3) may apply & consequently disallowance would come in picture.

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