DIRECTOR EXPENSES
Querist : Anonymous
THEN WHAT IS RULE IN COMPANIES ACT FOR THIS.
AND WAT UNDER INCOME TAX ACT.
AND WHEATHER THIS SHOULD BE REPORTED IN ANY AUDIT REPORT.
ANSWER BY KEEPING IN MIND THAT THIS IS PRIVATE COMPANY.
If you are paying personal expenses of director of the Company this will be treated as remuneration if these expenses are regular in nature. Before booking these expenses, please check the company’s articles whether it allows such expenses or not.
However, the provisions of remuneration of Companies Act, 1956 will not applicable to private company unless it is subsidiaries of public company.
Regards
CS Ajay Mishra
Querist : Anonymous
BUT CONFUSION IS UNDER INCOME TAXACT, WHEATHER COMPANY HAV TO ISSUE THESE EXPENSES AS PREQUISITE IN FORM 16, & DEDUCT TDS.
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