Gurmet Siingh (Chartered Accountant) (413 Points)
10 July 2009Halo Sir/Mam,
A Private company in which i m auditing is using the House Property of the Directors & in return the company is paying all the maintenance charges of the property in lieu of Rent.
So company is not paying any rent to the Directors but it is paying all maintenance charges of property.
Pls. help with a Case study,if possible, whether it is legal or it will be disallowed.
Thanks
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 10 July 2009
it is legal though there is no case law to support myself but there is no question of dispute.
it is allowed
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 10 July 2009
Mr.ramikhasla
and
Mr.Ritesh Kothari
First of you must ask for terms of agreement between the company and the owners of the property. After going through the terms of the agreement for usage of the property by the company, you will come to know the actual facts.
Best Wishes
Sathikonda
CAclubindia
