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Payment exceeding 20000/-
Can payment exceeding 20000/- be made to State Electricity Boards like M.P.S.E.B or govt sponsored mobile phone networks like BSNL? If yes, then why? Since MPSEB or BSNL are Government Companies and not the govt itself, and there is difference b/w the two...so can the payments exceeding 20000/- be made to such entities?? Please clarify..
Replies (5)
Payments to Central and State Governments, if the rules framed by such a Government provides for payment in legal tender, such as payment of direct taxes, customs or excise duties, sales tax, railway freight, etc. Thus, in case of payments made to railways on account of railway freight charges or for booking wagons, section 40A(3) will not apply - See Circular No. 34, dated 5-3-1970.
Since BSNL is not a government payment to same is not covered under rule 6DD.
Further , you have to examine the structure of electricilty board .....if the same is formed as organ of government , payemnt to them is payemnt to governemnt .
Dear sir,
In response to this query, please clarify whether such payments being made to BSNL, MSEB, etc., attracts TDS?
no..payments made to BSNL, MPSEB etc does not attract TDS as they are not covered under any subection of section 192.
no
Cash Payment to Southern Railway exceeding Rs.20000 for purchase of scrap batteried through tender. will it attract section 40 A (3)?
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