donation to mandir is allowable or not

This query is : Resolved

Mahender Jain (Querist)
Follow

15 April 2009 Company paid to Adarsh Bhakt Mandal agt. "Swamoni" Parsad for Hanuman Jayanti.

Whether this should be taken as donation or Staff welfare exp

if it should taken as donation, whether this is allowable exp or not

and if it not donation, then whether FBT should be applicable on such exp or not

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
Follow

15 April 2009 IT IS TO BE TREATED AS DONATIONS. IF THE DONEE IS REGISTERED U/S 80G THEN THE EXEMPTION CAN BE CLAIMED SUBJECT TO CONDITIONS AS PER THE PROVISION OF SEC 80G OF THE INCOME TAX ACT.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
Follow

15 April 2009 It can not be treated as business expenditure. In few cases donations to temples were settled as business expenditure because of the reason that it was indirectly related to peace of mind of employees somewhere and hence allowed as business expenditure. But in your case it soes not seem as expense incurred for mental peace of employees, so its tough to prove this as business expenses, hence shall be disallowed. If it is to be treated as donation for the purpose of 80G, then it can be claimed subject to that conditions of that section are satisfied.

Upgrade to CAclubindia Pro. Subscribe Now!