26 March 2008
ABC is pvt ltd co. wherein the MD of the company is going on a foreign tour with his family. Can the company treat the entire amount spend on him and his family as traveling expenses.
26 March 2008
NO IT IS IN CORRECT TO TREAT AS TRAVELLING EXPENSES BECAUSE THE NATURE OF SUCH EXPENSES IS PERSONAL THEREFORE SUCH AMOUNT SHALL BE CHARGED TO THEIR PERSONAL ACCOUNT
26 March 2008
it should be justified that expenditure is in relating to the business for which the MD travelled.In case the accompanying of his spouse is mandatory because of his health problem etc, the expenditure is allowable.otherwise will be treated as personal expenditure.
26 March 2008
Mr anadarao is absolutely correct bcoz it depends on facts whether the tour is for business purpose or not and company of spouse is again required to be checked for health or any other reason.
CAclubindia
