Commission paid for obtaining bank loan
This query is : Resolved
02 August 2010
Hi,
Is the commission paid by the company/any other to consultants( like CA) or other mediators while obtaining bank loan is allowable u/s 37(1) of incometax Act? or this expenditure is a nature of offence /prohibited under law?
solve my doubt with proper reason.
thanks & regards
Keep smiling
Is the commission paid by the company/any other to consultants( like CA) or other mediators while obtaining bank loan is allowable u/s 37(1) of incometax Act? or this expenditure is a nature of offence /prohibited under law?
solve my doubt with proper reason.
thanks & regards
Keep smiling
Aditya Maheshwari
(Expert)
02 August 2010
It is an allowable expenses as it is paid for obtaining loan which is to be used for business purpose. Hence allowable.
Message likes :
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Ratan Sharma
(Expert)
02 August 2010
Agree with expert. Payment of commission is not prohibited by law.
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