Expenses of the director

Veeresh (Self employed) (123 Points)

25 June 2016

If the expenditure billed in the name of the directors the company can claim it as a expenses ?

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2 Replies

Amrit Singh (Killer Stud[ent]) (751 Points)
Replied 25 June 2016

As per my Understanding, Company can claim such expenses only if it is approved by the Articles or Resolution. Not In any other Cases.

CA Harshal Totla (Chartered Accountant) (2224 Points)
Replied 26 June 2016

Personal nature expenditures are not allowable under income tax act. However, if the facts of the case proves that it is has nexus with the business of company or commercial expediency then it can be allowed. I can give more clarity if you can elaborate what kind of expenditure it is.