allowability of expenditure

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2009 A Doctor gives commission to other doctors who send patients in his clinic for some specialised laboratory checking. like say scanning of inner organs.
can he claim such commission as expenditure ?

Zeeshan

Zeeshan (Expert)
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01 December 2009 yes. As the expenditure is wholly for professional purpose and in revenue nature therefore allowed u/s 37.
however TDS is to be deducted as applicable for the allowability of the same.

shakuntala chhangani

shakuntala chhangani (Expert)
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02 December 2009 agreed

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2009 but, there is no reason as to why this payment is made. payment is made for getting patients from doctors. its not professional payment. then?

shakuntala chhangani

shakuntala chhangani (Expert)
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04 December 2009 Is it for the purpose of profession or not? Whitout reference Doctors don't get patients. So giving commission is a part of there professional exp. This is incurred to earn professional income hence completely fall within the ambit of Sec. 37. Regards, CA Shakuntala Chhangani

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