Sec. 40 a 3

Under section 40A(3), u should not make payment in excess of rs 20,000 in cash to a single party for a single bill.But under section,we have an exception that if payment is made to government as per rules where payment need to be made in Legal tender money,no dis allowance under section 40A(3).under code of practice on payment of bills by consumers under APERC,Licensee may insist any Collection centre to receive bill amount either in cash or cheque.so there is no wrong by collecting centre insisting you to make payment in cash.so generally payment mode is mentioned in bill.verify wheather pament mode is mentioned as cash or cheque,if on bill mentioned as cheque,u should ask such authorities in writing that they insisted u to make payment in cash,then no disallowance under sec 40A(3)