Can the donation given to non political local organizations be allowed to be deducted while computing PGBP if it is proved that these were incidental to the business?
The donations were given to local parties and organizations to maintain good relation and harmony. The business is in a sensitive locality and it’s not good for the business to make these organizations unhappy. Thus for the smoother and better running of the business, the donation was given. These expenses were incurred on the decision of competent authority to avoid any possible losses that
might occur by enraging these local non political organizations.
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Expenses Incidental to Business (Sec 37)
Replies (2)
Donations are willingly given. For the donor it is not a compulsion or burden.
Donations are disallowed while computing GTI and a deduction can be or can not be claimed U/s 80G.
In the above circumstances as mentioned by you it is a business compulsion and not a donation. It is to be given, whether it is allowable or disallowable.
If it is not a donation- do not tell it a donation. Say it Contribution, Say it Security Charges, Say it a Facilitation Charge or give it any other suitable name in the context of your business.
If you say it a Donation it is expressly disallowable.
If you say it any other thing -It may be allowed.
can Any one give the reply?
whether R & D Cess is applicable on royalty on yearly turnover payble to non resident company ?
Regards
Nikhil
9990259530
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