Club Membership
This query is : Resolved
J ASHOK KUMAR
(Querist)
03 February 2009
A private company(WOS) wishes to take club membership on the name of the company or on the name of the Managing Director. The Membership Fee is around 2.00 lakhs. Please advise me how to show in the books of account. Can it be written off as expenditure in the year of payment?
CA. B.SRINIVASULU
(Expert)
03 February 2009
Since it is a private limited company based on the profits of the company and the club in which the assessee is payaing the fee should be reasonable. Otherwise there is a danger that the Assessing officer will disallow the expenditure.
However on the otherside if you feel that there no above problems then you debit to Membership and subscripition as expenditure in company books and have to pay fringe benefit tax on the same.
However on the otherside if you feel that there no above problems then you debit to Membership and subscripition as expenditure in company books and have to pay fringe benefit tax on the same.
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