Rent agreement and expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2016 Dear expert,

I am working in a logistic company, our company uses other parties truck and bill is issued by the other party for each lorry trip including all expenses made and surplus..

For eg.
Tyre exp : 15000
Maintenance Exp : 5000
Diesel Exp : 5000
Surplus : 5000
Total bill of Rs. 30000/-

Now my question is can our company make rent agreement say Rs. 10000/- per month (on which tds will be deducted) and get all above mentioned expense bill of Rs. 25000 ( excluding surplus) in the name of our company.???? Are these expense ( rent+ bill of other expenses) admissible as per income tax?????

Please reply as early as possible and thanks in advance..

Amol S Joglekar

Amol S Joglekar (Expert)
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15 January 2016 I think you can do it, not an issue. But the crux of the issue is :the lorry owners may not want to disclose their TRUE profit to you

See, if you get a bill for RENT of say 10,000..... the other expenses like tyre, maintenance diesel shall be allowed in your books at ACTUALS. Ans getting ACTUAL expenses shall be a hell of lot TASK for you.

your views please.

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