Advance payment for Employee's training next financial year

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urvashi bhatia (Querist)
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02 March 2020 Dear experts,

I would like to know if a Pvt. Ltd. Co. can pay in advance for their director's/employee's training and development in the current financial year for the next financial year?
How will it be treated?
How much can a Pvt. Ltd Co. spend on an employee's/director's training?

Your answers will be appreciated.

Thanks & Regards

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Expert)
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02 March 2020 Yes, Private Limited company may pay Expenses in advance subject to TDS but while finalizing books of accounts entry for Pre-paid expenses is required to be made.
Amount of Expenses depends upon nature of business in which company is engaged.