Director's foreign Travelling Exp

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This query is : Resolved

Dhiraj Bagri (Querist)
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20 November 2010 Dear All,

Can a Company sponsor Director's foreign travelling expense and claim the same as company's expenses.

Further, above expense will not be taken as perquisite in the hands of Directors.

Thanking you

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 November 2010 If the Directors tour is not having any connection with the business of the company,
then same will be not allowed as a business expenditure.
But if the same is shown as perquisite to director the company may get deduction of the expenditure.

If the visit can be shown as having some business connection, like for searching the possibilities of export of goods, services etc.. or import of raw material etc, or meeting the customers etc.... then that travelling expenditure may be claimed by the company.

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