Cash withdrawn in foreign currency for foreign travel

Supporting for any tipe of expenses made is nessesary whereever possible, auditor may raise the queries for the proof of the expenses.

This where the concept of materiality arises. The Auditor may or maynot consider the lack of bills based on the materiality and risk.

As you asked perdiem for food and other expenses can be allowed if it is there in the travel policy of the said company.

Valid supportings are required.    If supportings are void, the said expenses are not allowed.

Sometimes for local travel bills may not be available and no bills for food if purchased from street stalls..

In such cases, if the Company has travel policy or accomodation policy, the above expenses shall not exceed the prescribed limits.

Director shall prepare a signed statement regarding the expenses during foreign trip along with all available supportings and get sanctioned by the Managing Director or Executive Director or Board of Directors or Chairman of the Board.

In my opinion, the above may be enough.

Dear Friends

Who will frame the policy?   It is not framed according to our requirements.

We are given this impression that it will be accepted, as long as it does not come to the notice of Revenue.    

Has Revenue ever told us so?     Please, help me to understand.

I also request you to read following section from the Companies Act, 1956

9. ACT TO OVERRIDE MEMORANDUM, ARTICLES, ETC