Can we pay Rs. 500000/- cash to Ecectricity Depat. for Monthly electricity bill???
is it covered in rule 6DD or contravention of section 40A(3)???
7 Replies
CA R. Srihari
(Senior Accounting Specialist)
(183 Points)
Replied 04 August 2010
S..its covered under rule 6dd which says payments to any government in legal tender is acceptable
Satyam
(Student CA Final )
(39 Points)
Replied 05 August 2010
Ya, It will not attract penalty under section 43.
Manish Pareek
(Chartered Accountant)
(34 Points)
Replied 05 August 2010
yes its covered under rule 6DD.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 05 August 2010
DEAR ASHUTOSH,
YES IT IS COVERED BY RULE 6DD ONLY WHEN THE PAYMENT IS MADE TO GOVERNMENT (CENTRAL OR STATE). SO IF THE ELECTRICITY PROVIDED BY OTHER THAN GOVERNMENT E.G. BSES, RELIANCE, TATA FOR MUMBAI, WOULD NOT BE COVERED BY RULE 6DD.
REGARDS,
MANOJ
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