Cash payment exceeding 20,000

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2013 sir
i am paying a electricity bill of amount 1,00,000 Rs by mode of cash payment is it allowable expenditure or to be disallowed ....?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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23 September 2013 I think it will be dissallowed, since 40A(3) & Rule 6DD do not provide any exemptions on payment made to government except - Rule 6DD(b) - 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; Now in this clause can be availed where it is mandatory to make payment in cash..

However Board has extended the benefit of this clause to following payments through Circular No. 34 - Pyments made to / for

a) Railways on account of freight charges or for booking of wagons,

b) sales tax..

c) excise duty...

Since ur case is not covered by the above hence amount will be dissallowed.........

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2013 thanq very much aryan singhania

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