Very very urgent

I think you can book it as Foreign travel expenses if he has purchased the currency for travel purpose

Yes, You can book as foreign travel expenses subject to co's guideline if any.

Thanks,

Jeevan Jain

The amount can not be booked as travel expenses, whereas it is being used for personal purpose. If you claimed it, it will be disallowed.

Secondly If the company have allocable surplus, then section 2(22) (e) will be applicable and it will be treated as deemed dividend.

Yes! it will be treated as deemed dividend or it will be disallowed.  The director can give a cheque in favour of co. equal to that amount.  In individual account it may be treated as travel expenses. 

Deemed Dividend arises only in case the director is also a shareholder & is having a substantial interest in the company, ie, holding more than 20% of shares of the company. If he is not a shareholder then deemed dividend does not arise.

As company has paid on Behalf of director,so it wll definately be considered as loan to the director which have to be paid back.

Company can't book this as expense

Originally posted by : Sanjay Bhatia
	As company has paid on Behalf of director,so it wll definately be considered as loan to the director which have to be paid back. Company can't book this as expense

 since it is for personal exps..

@ divya: i agree wid u divya.....

the statement given by the CA ashish gupta is wrong according to me...!!!!

@ Hitesh : Generally the directors of Pvt. Ltd. co. holds more then 10% shares. I have made reply indicating the provision, nt possible to write whole rule. Again 10% shareholding required to attract 2(22)(e), not 20%.

One more thing even if directors return the amount, 2(22)(e) will apply.

if possible adjust with the remuneration payable

As company has paid on behalf of director & director is an employee of the company. any payment by the company on behalf of emplyee is considered as loan to employee & is recoverable form employee.

So it wlll be considered as loan to the director which company has to recover from director (employee)

agree with ashish, it is 10%, and it is payable once its come u/s 2(22)(e).

as it is a personel expenditure u can not book the same in the books of a/c as a travelling expenditure. it will get disallowed

It will be a Loan, which is given by company to its director. So it will be assest of the company and director has to be paid it....Rajesh Bansal