expense aalowance/disallowance

This query is : Resolved

rashi doshi (Querist)
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03 August 2009 In a Pvt. co., the actual education expenses of a directors children are reimbursed are taken as an expense in the P & L a/c of the company.
is this correct?? they state that they are paying FBT on it and taking it under staff welfare, hence expense should be allowed.
what are the repurcussions under the Income Tax Act & The companies act?

Gokul

Gokul (Expert)
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03 August 2009 If they are treating it as Employees Welfare and have paid FBT on thesame then no mattert in Income Tax.

But as per Companies Act It is not allowd to book Directors personal expenses in P & L A/c.

If such expenses are paid as percusits and included in salary then no matter.