PGBP

This query is : Resolved

kamal (Querist)
Follow

07 September 2010 Sir

If the Director of a Company received AIR TICKET for its Buyer for Foreign Travel but the other expenditure met by the director himself and the expenditure charged in P&L of company.

My Question the Ticket cost Provided by the Buyer whether treat as Income of the company or not.

Please provide the Section under which such income is chargeable.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

07 September 2010 If trip for business purpose then expenses on the trip allowable u/s 37(1).

kamal

kamal (Querist)
Follow

07 September 2010 I am not concerned about expenditure, I want to know whether the Ticket ( free of Cost ) provided to Company is taxable at fair market rate.

Upgrade to CAclubindia Pro. Subscribe Now!

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

07 September 2010 It should not be considered as a sum received without consideration to be taxable u/s 56(2). Hence it should not be taxable.

kamal

kamal (Querist)
Follow

07 September 2010 Dear Sir,
In Section 28 sub Section (iv)

iv) The value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession;

This Particular lines make me confuse please advice.

Because the Travel Ticket is provided in connection with Business.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

07 September 2010 yes it would be taxable under that section at the fair value as it is a benefit given to you. Also the same is being given due to some business connection and hence would be taxable and accordingly all the above posts stand modified.