Guarantee commission to director and managing director
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 December 2012
Is guarantee commission to director or managing director of a limited company, allowable expenses for the company????
secondly, if the limited company is having a joint venture with a foreign company, than also such commission is allowed???????
Above both questions are to be answered in the context of Income Tax Act, 1956.....
Thanks....
secondly, if the limited company is having a joint venture with a foreign company, than also such commission is allowed???????
Above both questions are to be answered in the context of Income Tax Act, 1956.....
Thanks....
CA PARAS BAFNA
(Expert)
04 December 2012
Guarantee Commission payable to the Director
is an allowable expense, provided-
1. the director has extended such guarantee wholly and exclusively for the purpose of the business of the assessee company.
.
2. It should not be in the nature of capital expenditure.
.
You may refer Section 37.
.
is an allowable expense, provided-
1. the director has extended such guarantee wholly and exclusively for the purpose of the business of the assessee company.
.
2. It should not be in the nature of capital expenditure.
.
You may refer Section 37.
.
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