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shubham Pahuja (Chartered Accountant) (236 Points)

28 April 2017

Travelling expenses of Rs.90,000 on foreign tour of a director for negotiating collaboration with the foreign manufacturers for initiation of new line of business is eligible for deduction or not?

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4 Replies

Gurusala Teja (4 Points)
Replied 28 April 2017

Yes, if the negotiation relates to the extension or planning extension of existing business, it is allowed as deduction. But if the same is for a new business (I.e. new entity or organisation altogether) then, it is not allowed

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Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 28 April 2017

Dear Sir , ,,,,,,,,,,,,,,,yes , you are avail if travel for business purpose , but keep prop or evidence of travel ,,,,,,it is also allow to new business if you start business after this trip

Gurusala Teja (4 Points)
Replied 28 April 2017

Yes, if the negotiation relates to the extension or planning extend the existing business, it is allowed as deduction. But if the same is for a new business (I.e. new entity or organisation altogether) then, it is not allowed for the present business and it is allowed for that new organisation (like preliminary expenditure) and nexus between the travel and business objectives should be established