credit card

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2011 Ours is a private limited company. We need to some air and train bookings fro ththe travel of employees for offiicial purpose.with online banking itis not possible as company holds current account.
Corporate credit cards are issued if company's turnover is above cretain limit.
As of now we dont have coroporate card.
Can we take a credit card in our director's name or employee's name and then make the payment directly by company's account for the transactions done by that card.
Please let me know whether the above procedure is fine?
If not please suggest a solution for the above query

Mandar

Mandar (Expert)
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11 April 2011 Hi

You can get the credit card in favor of your Director & you can ustilise the same for official purpose.
As far as you are using the same for business purpose ther should not be any harm. But if use it for directors' personal expences etc. then the csot may not be deductible under income tax while computing taxabale income.