40 a (3) clarification

Tax queries 298 views 1 replies

SECTION 40 A(3) EXCEPTIONS TO RULE 6 D CONTAINS AS ANY PAYMENT FOR GOVERNMENT IS EXCLUDED FROM THIS PROVISIO, NOW THE PROBLEM IS I HAD PAID RS .31,000 AS ELECTRICITY CHARGES IS THERE ANY CHANCE FOR DIS ALLOWANCE, if not is there any case laws supporting the same

Replies (1)

Generally If EB paid in cash then it will not be disallowed u/s.40A(3). But there may a minute chance to get it disallowed. The reason being whenever such E-Seva does not accept account payee cheque or Draft, As per provisio you can make payment in cash. I think most of e-sevas/ Mee sevas will not accept cheques for EB Payment. But even though they accept, i found no cases of disallowance of those payments.


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