compensation paid to director on termination of services ,is it allowable expenditure or not
11 Replies
praveen
(Chartered Accountant)
(6971 Points)
Replied 14 April 2010
it is an allowable expenditure. There is no specific provision which disallows such a compensation made to a director.
CMA K SIVA KUMAR
(Jr. Executive (Accounts))
(79 Points)
Replied 14 April 2010
yes that is completely allowable expenditure
CA. Rahul Dadhich
(Chartered Accountant)
(26 Points)
Replied 14 April 2010
There is no reason that why such expense should not be allowed.....
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 14 April 2010
It is allowable deduction as when it is paid on termination the nature of payment does not change :)
sanjoy saha
(student)
(126 Points)
Replied 14 April 2010
It is taxable in the hands of director [Rule 2BA,Section 10(10C) does not applicable to director].
Therefore, it is an allowable expenditure for the company.
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 14 April 2010
yes it is allowable.....bcoz it is taxable in the hand of director......
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