Maintenance Expense in lieu of Rent
This query is : Resolved
Gurmet Siingh
(Querist)
10 July 2009
Halo Sir/Mam,
A Private company in which i m auditing is using the House Property of the Directors & in return the company is paying all the maintenance charges of the property in lieu of Rent.
So company is not paying any rent to the Directors but it is paying all maintenance charges of property.
Pls. help with a Case study,if possible, whether it is legal or it will be disallowed.
Thanks
A Private company in which i m auditing is using the House Property of the Directors & in return the company is paying all the maintenance charges of the property in lieu of Rent.
So company is not paying any rent to the Directors but it is paying all maintenance charges of property.
Pls. help with a Case study,if possible, whether it is legal or it will be disallowed.
Thanks
CA. B.SRINIVASULU
(Expert)
10 July 2009
If the payment is reasonable and on par with the market rate it will be allowed as a deduction. There should be agreement between the Company and the Director and proper resolution should have been passed for the same and in notes on accounts disclosure should be made that RS.___ has been paid as maintnence charges to the director.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Number of years as per AS amortisation of Goodwill
- Additional trade name
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
