21 June 2010
In one of my client which i was doing Tax audit, i used to see lot of expense booked under the head Business promotion. it is nothing but the under-table expense, Bribe given to various government authorities including IT Dept. The question is these expenses do not have any evidence, formally we have to disallow. However, whether they can be treated as gift given to a person associated with the Company? THANKS A LOT IN ADVANCE.
21 June 2010
Business promotion & Sales promotion & Staff welfare expenses- these type of expenses does not get any evidence. Company will book the expenses to avoid tax liability. These type of expenses will be disallowed when the scrutiny happens. otherwise Income tax department will not consider seriously. No need to worry about on it.
CAclubindia
