Income tax - 6 d d f : cash payment provision

This query is : Resolved

TARIQUE RIZVI (Querist)
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17 May 2017 Dear Friends
assalamo alaikum

ABC Private Limited Company is holding her own processing plant of butter,cheese and other milk products but the suppliers of raw material are not accepting cheque payment against the delivery of the material because most of the suppliers are quite unknown to us. Those who are known to us are ready to accept cheque payment but their rates and the quality of their material both are not satisfactory.

In such situation whether Rule 6 DD F for cash payment provision is applicable.

Please guide me and oblige.,

yours tarique rizvi
982 1630 130

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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18 May 2017 As per Rule 6DD is applicable only to the producer of the product. The rule is not applicable if the payment is made to the trader of diary products. Thus, the payment in cash is only allowed if he is the direct producer of dairy products.