Dear all,
Kindly suggest your expert advice on whether i PAD distributed to directors considered as revenue expenditure.
If yes kindly give some valid reason for it.
CA RAHUL (ASSISTANT MANAGER) (34 Points)
15 March 2012Dear all,
Kindly suggest your expert advice on whether i PAD distributed to directors considered as revenue expenditure.
If yes kindly give some valid reason for it.
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 15 March 2012
Revenue nature expense as it is in no way linked directly for increasing the productivity of company. I PAD is merely a like communication device which is given to directors.
Your case is purely a judgemental issue and you can have an accounting policy stating that all assets below USD 2000 will be considered as revenue expense or vice versa.
CA RAHUL
(ASSISTANT MANAGER)
(34 Points)
Replied 15 March 2012
Dear sachin,
I appreciate your reply, but if my contention about purchase of I PAD would be for unproductive use for organisation , i think its not a valid reason.
deepak
(Chartered Accountant Company Secretary)
(94 Points)
Replied 17 March 2012
Refer section 37(1) of income tax Act !! and analyzed based upon your purpose..