deductible expenditure?

Hello,

My company Pays expenditure Incurred By its client on various geographical visits and report generation for example Tour And Travel Expense, geological study and Salary to 2 employees of client who were there with director on site.i want to know whether this expenditure is allowed or not ?if yes than how should i CLASSIFY  these expenses specially salary one.

plz reply.........its urgent!
 

Replies (4)

Whether allowable, or not ? The thing is under section 37 any activity carried out in normal course of business and is contributing to revenues and is pertaining to business is allowable. Where you're taking consultation from some outside consultants, in due course of business and paying fees for geographical prospecting/exploration, the amount paid will be allowable. 

Now as far as salary is concerned, are you sure you're paying salary to them ? Aren't they on the payroll of the the client , so salary should be payable to them. The classification instead should be reimbursement of expenses, and that should be the head under which you classify these expenses in your company. Essentially, the client is claiming their employee is working for you and in course of consultation/work, the expenses they incur will be payable by you. 

That probably should be the classification. 

thanks dhruv

Thanks so much for the reply.... yes we r paying salary to the employees and they r on payroll of client and my doubt is related to classification TITLE  i.e if i write 'reimbursement of expense' as under administration expenses in P & L A/C will it be correct?

If you've employed a technical consultant or a professional consultant, classify is under legal and professional fees and have two subheads under it : 

-Consultant Fee ( this is the actual fee you're paying to them for their services)

- Reimbursement of Expenses  ( the amount you're paying on their behalf, salary, hotel stay charges etc. )

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details