Whether payment made to Octroi above Rs. 20000 in cash is disallowed?
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 20 June 2010
Amir
(Learner)
(4016 Points)
Replied 20 June 2010
HI Siva,
Rulee 6DD(b) says -
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;
Freight charges, etc., paid to railways - The provisions of section 40A(3) would apply in computing the income under the heads “Profits and gains of business or profession” and “Income from other sources” as per section 58(2). So far as payments made to the railways on account of freight charges or for booking of wagons, and payment of sales tax, excise duty are concerned, clause (b) of rule 6DD specifically exempts such payments from the purview of section 40A(3).—Circular : No. 34 [F. No. 13A/92/69-IT(A-II)], dated 5-3-1970.
I think octroi paid in cash, in excess of Rs. 20,000 shall be disallowed
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