A private company all directors using credit card for personal expenses,booking as staff welfare in company books,my doubt is what evidence need to see,whether credit card statement only or invoices and receipts of such expenses.
31 January 2015
First of all It has to be seen whether co is allowing any nature of Pesonal Expenses to each director If Yes than You should not check the Invoices otherwise Invoices must be checked for ascertain whether Director is permissible for such expenses by the co.
31 January 2015
Thanks,whether such expenditure allow by Income tax Act? as such expenditure a big amount,as it exclusive use for business purpose(Sec.37)
03 February 2015
Please note that, employment agreement between company and director defines what payments a company should make to or on behalf of the directors. If the agreement states that certain expenses which personal in nature for directors will be paid by the company then such expenses are part of remuneration of directors and cannot be debited to staff welfare. And only then these expenses are allowed as deduction. You should check the employment agreement between directors & company.
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