Expenses in Books of Accounts
This query is : Resolved
14 December 2022
One of my clients is debiting legal expenses in the books of account of a Private Limited Company. They are showing an expenditure of about 5 to 6 lakhs every year. Fees are paid after deducting TDS and GST is paid on legal fees. The company has no case in court. These are paid for personal expenditure. In the computation of income tax, all these expenses are disallowed under section 37.
Now my question is whether there is any issue as per companies
act and income tax?
Please advice your valuable suggestion in above matter.
Thanks
N K
Now my question is whether there is any issue as per companies
act and income tax?
Please advice your valuable suggestion in above matter.
Thanks
N K
15 December 2022
No issues under income tax as such expenses are disallowed.
Being private company no issues under companies Act.
Being private company no issues under companies Act.
15 December 2022
But auditor says there may be problem as per companies act 2013.
Auditor has object to payment of fees from the bank account of companies for personal case expenses.
Auditor has object to payment of fees from the bank account of companies for personal case expenses.
15 December 2022
Being private company no problem if shareholder don't object it.
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15 December 2022
All the shareholders are from the family and none are outsiders shareholders.
15 December 2022
In such a case no problem.
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