Please suggest the Correct Accounting Head to be Charged agst. Monthly Payment of INR 3.50 Lacs paid towards Lease rent for an accomodation provided to a Director in a company.
30 May 2013
Need to debit as Rent expenses only and incase the director also employee of the company then need to be taxed as taxable perquisite in the hands of director
30 May 2013
It is rent free accommodation for Director, not for company. this just rent expenses for company. you can debit separately as Rent- Director accommodation to keep the track