The employees of the company have formed a club which is unregistered club. The club maintains its own records of expenditure and income and has members who look after its activities. The company contributes in this club for its employees. Whether this contribution by the company should be considered as contribution to club and disallowed or will it be treated as staff welfare expense
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Clause 17 - tax audit - contribution by company to club
Replies (1)
It should be allowed as a Revenue expenditure, There is a case Law on this similar issue, I could not recollect the Case Name but yes the contents were based on Expenditure done by the company for Welfare of the employees & was allowed as Revenue, as the court opined that such expenditures help in keeping the workers & employees away from Fatigue 7 also would Keep them Upfit for good preformance & hence Revenue Exp
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