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Section 40a(3)

m nagar (articled) (52 Points)

14 February 2012

If payment of Rs 20000/- or above is made towards ELETRICITY BILL on a single day in CASH then whether it would attract provisions of section 40A(3) ???

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9 Replies

GOPAL AGGARWAL (DOING NOTHING) (1339 Points)
Replied 14 February 2012

In my these are not covered as this is govt dues and paid to government and as such 40A(3) not applicable

Anooj (Chartered Accountant) (2130 Points)
Replied 15 February 2012

Yes sure. Any cash payment above 20000 attract those provisions.

Ashish M (Chartered Accountant) (2731 Points)
Replied 15 February 2012

electricity and water bills r all govt. dues..!!! they r paid through govt. channels.., their non-payment leads to governmental actions.., & their waiver and tariff rates r strictly notified by govt. ..!!!

exemption applicable under Rule 6DD(b) [payment made to govt.]

3 Like

Kiran Kumar M (CA) (29 Points)
Replied 15 February 2012

As per Rule 6DD(b), Payments made to Government ( both Central and State Government ) are not attracted by the provisions of Sec 40A(3). For eg: Direct Taxes, Rail way freight, Sales Tax etc.,, Since electricity bill payment is payment to State Goverment, it will fall under the exceptions given as per Rule 6DD and thereby provisions of 40A(3) will not apply in this case.

2 Like

Tony John (Chartered Accountant) (6085 Points)
Replied 15 February 2012

Originally posted by : Kiran Kumar M
	As per Rule 6DD(b), Payments made to Government ( both Central and State Government ) are not attracted by the provisions of Sec 40A(3). For eg: Direct Taxes, Rail way freight, Sales Tax etc.,, Since electricity bill payment is payment to State Goverment, it will fall under the exceptions given as per Rule 6DD and thereby provisions of 40A(3) will not apply in this case.

1 Like

suchit shah (Dy. Manager(Finance & Accounts)) (208 Points)
Replied 15 February 2012

in my opininon it needs to be checked that to whom that electricity bill has been paid???? e.g. in Ahmedabad (Gujarat) its the torrent power provides the electricity which is not Govt. co. then in that case it will be disallowed....

Suraj S (Audit Executive) (335 Points)
Replied 15 February 2012

agreed with Suchith.......

Anvesh Desai (Chartered Accountant) (156 Points)
Replied 15 February 2012

Originally posted by : suchit shah
	in my opininon it needs to be checked that to whom that electricity bill has been paid???? e.g. in Ahmedabad (Gujarat) its the torrent power provides the electricity which is not Govt. co. then in that case it will be disallowed....

Yeah I agree to above.. In ahmedabad, Torrent Power Ltd provides elecctricity, hence if payment in cash is equal to or exceeds Rs 20000 then the same has to be disallowed..

1 Like