09 December 2010
The company in which I am working pays the hotel expenses(including lodging) of its clients comming to India for official purposes. Since this expense being a major item in its total expenditure, please advice under which head it is to be accounted and whether it will be allowed as a deduction under IT Act, 1961
10 December 2010
Since the expenditure is being undertaken for your clients it can be shown as Business Promotion Expenses. If the visit is related to your business purposes deduction will be allowed.
CAclubindia
