HI,

I have a business that needs me to travell  a lot. Recently I have started travelling by flight. However I use my friends credit card for booking flight tickets. I would like to know -

1) If I can post these expenses, since the booking are made on other person's credit card.

2)  What documents are needed to post the airfare expense.

3.)  Sometimes I cancell the reservation and in that case I dont get any boarding pass, so what can be submitted.

4.) (Tricky question) My son also travels by flight, though not concerened with my business, can I put those expenses as well against my business expenses

sir, u told that u have used u r friends credit card for travelling expenses. have u reimburse ( repay ) that amoun to u r friend ? if yes, then what is the mode of payment ? if u have given him a cheque which is reflacted in u r bank statement, then u can surely claim such expense as proof of payment is available. it wil be treated that u r friend has incurred expenses on u r behalf and u reimburesed him the amount due. Sir but i m advising u to use u r own credit card for meeting u r business expenditure as u can easily claim deduction for the same by disclosing credit card statement given by bank. when u r using other person card, its slightly difficult. further, u r sons personal travelling is not u r business expenditure. so u cannot claim it. fill free to ask further.

 1. u can claim the expenses. but burden of proof to prove the travells were genuine business expenditure will be on you.make  a single entry for each tour and attach all bills and other documentary evidence . and prepare a tour summary explaining the purpose of tour and all expenditure made on the tour. this way the genuiness of the transaction can't be doubted by a.o.Also reimburse ur friend through a/c payee cheques and avoid using cash to repay ur friend. attach the photocopy of the cheque to voucher of the respective entry in your journal voucher book. also attach the relevant portion of ur friends credit card statement to highlight the cost of airtravel

for future expenses take credit card on corporate a/c if u r running a co. ...in case of propreitorship business use ur own card. if u continue using the friends card the a.o. may think u r claiming non business expenses and evading tax.

2. to post airfare exp attach1. air tickets2.bil;l of the ticketing agent 3. boarding pass. i recomend posting a single entry for each tour rather than making separate entries for air ticket, local conveyance on tour and boarding and lodging. also dont use ur business credit card for personal purposes.

3. if u incurr cancellation charges i.e. the amt refunded on cancellation is  less than amt paid for purchasing ticket, then balance amt can be debited to tour and travelling a/c. attach evidences for pmt of ticket and amt refundd by ticketing authorities.

4.expenditure on ur son's travel cant be claimed as business expenses.