rembursement of expense

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sandeep gupta (Querist)
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23 December 2010 the director of company has paid hotal expense through his credit card. after few days the company has deposited the same amount to his bank account. whether the expense is allowable for the company. what will be a tax treatment of this

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 December 2010 If the director has incurred the expenditure for the purpose of company's business and company reimburses it then the said expenditure is an allowable business expenditure.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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24 December 2010 else it wil added to the directior remuneration and accoringdly provisio n of the it law will be applicable

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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24 December 2010 Also refer >> https://www.caclubindia.com/share_files/tds-rate-chart-fy-2010-11-ay-2011-12--26034.asp >> https://www.caclubindia.com/share_files/files_download.asp?files_id=33659 <<<

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