Forign travel

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Samir (Querist)
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26 March 2008 ABC is pvt ltd co. wherein the MD of the company is going on a foreign tour with his family. Can the company treat the entire amount spend on him and his family as traveling expenses.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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26 March 2008 NO IT IS IN CORRECT TO TREAT AS TRAVELLING EXPENSES BECAUSE THE NATURE OF SUCH EXPENSES IS PERSONAL THEREFORE SUCH AMOUNT SHALL BE CHARGED TO THEIR PERSONAL ACCOUNT

Devendra Mishra

Devendra Mishra (Expert)
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26 March 2008 Should go to personal Acount

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CA. Amit Daga

CA. Amit Daga (Expert)
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26 March 2008 Its depend ..not compulsion that it should be charged into personal account only

Anand

Anand (Expert)
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26 March 2008 it should be justified that expenditure is in relating to the business for which the MD travelled.In case the accompanying of his spouse is mandatory because of his health problem etc, the expenditure is allowable.otherwise will be treated as personal expenditure.

CA Praveen Chopra

CA Praveen Chopra (Expert)
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26 March 2008 Mr anadarao is absolutely correct bcoz it depends on facts whether the tour is for business purpose or not and company of spouse is again required to be checked for health or any other reason.