if a company pays certain amt in cash to its director's house maid..... which is for the personal purpose of the director...which acc should be debited by the company???.... can it be the directors personal acc???... or what else can be debited????
5 Replies
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 28 August 2010
Debited to director personal account
Chinmay
(Accounts Professional)
(356 Points)
Replied 03 September 2010
I think it is included in Director's salary as “Perquisite”.
Dinesh Kumar Agarwal
(Article clerk)
(117 Points)
Replied 20 September 2010
Mr. Navin jain is Correct and also refer to IT section 17(2)(iii)
Samrendra
(Asst. Manager- Internal audit)
(221 Points)
Replied 30 September 2010
| Originally posted by : Chinmay | ||
 |
I think it is included in Director's salary as “Perquisite”. |
 |
Any payment made to director is charged to perquisite only when he is eligible for perquisite and mentioned under the director's remuneration which is decided at the time of appointment of director otherwise any on behalf payment made to director is treated as Loan to director.
As in this case payment is made to Director maid should be charged as Loan to Director (Onbehalf payment as director is suppose to pay maid) instead of treating it Perquisite (As this payment is not made as for availing services from Director)
But if House Rent and other household expenses are covered under the directors remuneration then this payment can also be covered under perquisite.
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