Payment u/s40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 we require to make payment in cash for purchasing rice husk,groundnut shell,bussa,bagasee.Please advise whether payment in cash more than Rs.20000/- allowed as per rule 6DD as payment made for purchase of agriculture produce waste material.

jaydip a. limbasiya

jaydip a. limbasiya (Expert)
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08 February 2013 If it is directly purchased from the farmer then rule 6DD shall apply.

If it is purchased from merchant than You should pay it by an a/c. payee cheque/draft/e-payment.