Sec 40A(3)

This query is : Resolved

JOYAL GEORGE (Querist)
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25 July 2009 Sir,
I want to know whether payment made to State Electricity Board in cash exceeding Rs.20,000/- will attract disallowance u/s 40A(3)?

Rule 6DD exempts pyt to Government
"where the payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender;
Whether payt made to a Board controlled by State Govt. is covered by the above provision?

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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25 July 2009 Yes. You can make payments to State electricity board in cash exceeding Rs. 20000/-

saurabh

saurabh (Expert)
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26 July 2009 agree with the expert

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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26 July 2009 agree

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)
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26 July 2009 Payment to State Electricty Board in excess of Rs.20000/- is not attracting sec 40A(3. But now a days almost in all states, SEBs have been converted in to Companies e.g.In Rajasthan it is Jaipur Vidyot Vitran Nigam Ltd, Jodhpur Vidyut Vitran Nigam Ltd., Ajmer Vidyut Vitran Nigam Ltd etc. in such cases payment exceeding Rs.20000/- will be disallowed as all these are companies might be Govt owned but still all these are companies. Hence please check the status in your state.

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