Allowability of certain expenditure

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24 Points Posted on 27 June 2014

I have a corporte client. The client (director of Private company)  wants to send his son abroad for studies at the expense of the company. The son  is ready to enter into an agreement to serve the company for a period of 5 years after the completion of his course and if he does not continue the job, he shall be liable to repay all the expenditure to the company.

Please tell the allowbility of the expenditure as per the Comapnies Act, 2013 and as per the Income tax Act, 1961.

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On 27 June 2014 at 16:43 Report
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self
2121 Points Posted on 27 June 2014

IT IS NOT ALLOWABLE EXP., IT IS IRRELEVANT AGREEMENT IS ENTERED OR NOT.

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On 27 June 2014 at 16:49
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Fresher
594 Points Posted on 27 June 2014

Ref: case .Naidunia News & Networks Pvt Ltd by M.P high court.

Link : click here

As per the case, the expenses can be allowed. But ofcource, assessee your facts with case

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On 27 June 2014 at 17:05
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CA and CMA
853 Points Posted on 27 June 2014
there is a case law on same issue..i dont know the name...bt it was allowed based on d facts dat the services dat will be offered by director's son are in line with the education which he studied abroad....
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On 27 June 2014 at 19:54

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