Tour & Travel Expenditure allowability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 Dear all,

Please help on following query..

for a concern,one of the management person is going for a business tour along with his spouse. Spouse of that employee is not related in any sense with the business of the concern except for a relationship of husband/wife with the employee of that concern.
Is the expenditure incurred on spouse of employee on tour & travel will be allowed as deduction to the concern or not??

Thanks & Regards
C.A. Deepak Kakkar

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

09 August 2010 No it will not be allowed as a business expenses.

If paid by the company, can only be treated as perquisite salary to the employee to the extent the expenses can be attributed to the travel of his spouse.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

09 August 2010 AGREED,
EXPENDITURE RELATED TO SPOUSE (IF CHILDREN THEN ITS ALSO) WILL BE PERSONAL EXPENSES OF SUCH DIRECTOR. WHETHER THESE EXPENSES ARE RECOVERED FROM SUCH MANAGEMENT PERSON.
IF THERE IS ANY POLICY OF LTC, THEN TRAVELLING EXPENSES RELATED TO HIS WIFE, CAN BE ALLOWED EXTENT TO PROVISION OF LTC.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now