16 July 2010
Please advise whether expenditure in connection with Silver Jubilee Celebrations of the Company is admissible as business expenditure. The expenditure is likely to be about Rs 25.00 lacs including (a) Rent for Function Hall and Furniture, (b) Hotel accomodation for Distributors and Agents attending from other Cities, (c) Lunch and Dinner, (d) Transport, (e) Publicity in News Papers and TV and (f) Gifts as well. Please quote any circular or case law references
17 July 2010
Except gifts all are allowed fully. In the case of gifts it is for specific persons like senior employees it will be allowed but it will treated as perquisite. If the value is small ie for all same item is given then it will be allowed.
CAclubindia
