Accounting Issue Related to address

707 views 4 replies

Hi,

 

I have a proprietary firm Reveven Venetures registered in Ahmedabad where I Amit Kulkarni is the sole proprietor.


I am currently in pune.

 

I want to show Internet Bill I use here in my expenses as the company works in software field.

 

My question is - Bill is for an address in pune while the company is in ahmedabad . Will this be an accounting issue?

 

Apart from the address part , everything else is legit since its a computer firm

 

Please guide.

Replies (4)

If internet is being used for business purpose, it can be charged to firm P&L.

 

Address does not matter.

 

Originally posted by : kriru


Hi,

 

I have a proprietary firm Reveven Venetures registered in Ahmedabad where I Amit Kulkarni is the sole proprietor.


I am currently in pune.

 

I want to show Internet Bill I use here in my expenses as the company works in software field.

 

My question is - Bill is for an address in pune while the company is in ahmedabad . Will this be an accounting issue?

 - you have not provided the nature of use, is it for casual use or monthly payment towards internet use? if monthly then does the company have any branch in pune? if yes then there is no bar to use.

- if company does not have any branch in pune, then who is using it in pune, is it the proprietor himself, and his residence is in pune? if yes or no then in both the cases

- how the bills are paid? by cash ? 

- avoid cash payments of such bills, use the company cheque / netbanking to pay such bills, to establish the direct nexus towards the use and payment, 


Apart from the address part , everything else is legit since its a computer firm

 

Please guide.

as the expenses is related to business it is deductable 

no issues relating to address 

As the expenses reletated to business , it is deductable, Address doest matter.


CCI Pro

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