Sec. 40(A)3

whether Octroi payments made in cash will be hit by SEc.40(A)3- ref to Rule 6DD
Replies (3)
As per Rule 6DD(b), amount paid to Central or State Govt. doesnot attract the above sections. As the octrai is paid to State Govt. therefor this section is not applicable
Mr. madhusudan, many thanks for you reply. However there is still an element of ambiguity in my mind with regards to octroi being payment made to the state government. i believe it falls within the purview of payment made to a local authority and as such does not find itself within the ambit of Rule 6DD. if you woud be so kind as to further explain? thank you. shehtaz
Yes, dear friend....... I has also the same doubt in my mind as the amount is actually paid to the credit of Local authorities, but as in your case the amount is already paid, you can do nothing except trying it to justifing it to the assessing officer. Regards..

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