Disallowance of expenses


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Querist : Anonymous

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Querist : Anonymous (Querist)
15 September 2011 If a company purchase some gift(Gold Coins) for distribution to its customer for sales promotion from a government co. above Rs. 20,000.00 in cash in single payment.
Is the Expense eligible for deduction?

15 September 2011 No, payment made to government co is not included in Rule 6DD of the Income Tax Rules, 1962


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Querist : Anonymous

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Querist : Anonymous (Querist)
15 September 2011 But the client is claiming that as the payment is made to govt. co. so the same can be claimed as deductible exp.


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