10 October 2013
Company has rented a house for accomodation of Directors. Company has paid rent advance of Rs.1 lakh and monthly rent of Rs.10,000. Since the payment has been made in company's name, can the company avail tax exemption in respect of 1 lakh rupees and 10,000rs? pls clarify
10 October 2013
Rs 1 lakh shall reflect as security deposit on the asset side (whether current or non-current shall depend on the duration of the deposit)
Rs 10000 should be claimed as expense.
While calculating salary of the directors, taxable perquisite may be computed. Alternatively, this house may be shown as company guest house.
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