Eletricty bill payment in cash more than 20000

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Rakesh Kumar Jangid (Querist)
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17 October 2011 eletricty bill of AJMER VIDUTH VITRAN NIGAM LIMITED paid in cash which is more than 20000.
this expenditure is allowable or not?

CA Neha Jain

CA Neha Jain (Expert)
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17 October 2011 The expenditure will be disallowed as payment to government body made for electricity distribution is not included in the list of exceptions given in Rule 6DD.

Yash Anandkumar Mandavia

Yash Anandkumar Mandavia (Expert)
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17 October 2011 In my humble opinion, looking to the materiality of the transaction, the expenditure is allowable.

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Rakesh Kumar Jangid

Rakesh Kumar Jangid (Querist)
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20 October 2011 what is legal tender acc to rule 6dd.

and can eletricity bill can be taken under legal tender

CA Neha Jain

CA Neha Jain (Expert)
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20 October 2011 Tenders are very much different from the electricity bills.

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CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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20 October 2011 As per prudent practice payment made to goverment covered under rule 6DD ,,,,so there is no disallowances for payment of eletricity bill...because payment made into the a/c of goverment

Rakesh Kumar Jangid

Rakesh Kumar Jangid (Querist)
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20 October 2011 Ajmer Vidyut Vitran Nigam Ltd, (AJMER DISCOM) has been established under the Companies Act,1956 by Govt. of Rajasthan.

This is a company and not a department of government.
then also this bill of 43000 paid in cash will be allowed.
this bill is paid through e-mitra.