Expenses allowed or disallowed

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umesh (Querist)
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17 July 2014 i hv a client.he has his residential house of two storeys.In first storey he is running hospital as company.he has given first storey to company as rent.
All electricity bills are coming in his personal name but are commercial in nature.all electricity is exclusively used in the company.

whether exp will be disallowed as they are not in name of company. ?

thanks in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 July 2014 no. it wont be disallowed. expense will be allowed.

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umesh

umesh (Querist)
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17 July 2014 Thank you...and tell me one more thing..whether this amount of electricity will be included in rent amount and TDs will b deducted ?

Bcoz rent ki definition bhut extend kr di hai...

Expense company,landlord k behalf pe Khud hi pay kr deti hai kyunki ghr ka hi matter hai

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umesh

umesh (Querist)
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17 July 2014 Thank you in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 July 2014 you should park the expenses separately and as much as possible get a separate invoice for reimbursement for electricity expense to avoid tds.

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umesh

umesh (Querist)
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17 July 2014 Ohk..but abhi scene ye hai ki meri company client ne electricity bill khud ki expenses file me rkhe hai and rent deed me separately likha ki electricity expense company ko khud ko hi pay krne hai...now billing for rent ,electricity exp.,etc in not available...nd considering it as electricity expense...should proceed it by considering it correct ?