Hello Everyone,
Someone please help me with the below mentioned query :-
An Office space is rented (we are the tenants) and the same address is registered in MCA for company incorporation. Rent agreement of this property is between Owner of the property and Director.
Query :- Can we pay rent of this property from company's current account and show the rent as expense in company's books of accounts. Please help.
Kindly note that there is a clause in Rent agreement that we cannot sublet the property and we have to pay all other charges to owner of the propery.
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Can we pay rent from company Account and claim it as expense
Replies (9)
If the rent agreement is for Business/office premise, you can.
Yes sir, its our office. how can we do that
1. You should have clause in the rent agreement for the usage by the company for its office.
2. Pay rent directly from the company account to owner and get receipt in company's name.
Okay thanks sir.
You are welcome.
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Yes there are two options .
Yes, if the rent agreement allows for the company to use the office space and there are no restrictions on the company paying the rent, you can pay the rent from the company's current account and show it as an expense in the company's books of accounts.
To learn more about GST on Rent: Provision for a Tax Deduction on Income Tax for Rented Property click here
For more detailed information, visit Swipe Blogs.
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