HI
I am working in pvt ltd company i would like to know about that we are making payment to director for his personal use (like telephone bill of residence,electricy bill,credit card payment,shopping bill) through our company bank account.
Can we treat it as company expenses or there is any tax or acconunting implication.
Pls reply
Hello
Expenses which are in the nature of commercial expidiency and incidental to the carrying on of business are deductible as revenue expenditure
Others are taxable
You have to apply this test to decide whjat is deductible u/s. 37 and what is not deductible
-Ishaan V. Patkar
company & directors are diffreant person ,director personal expenses not treate as a company expenses
CAclubindia
