A person received a gift from a proprietorship firm on the occasion of marriage , Now the gift received in the hands of an individual is not taxable.
Can the proprietorship firm claim expenditure?
If yes then what's the accounting entry for this?
is it that simple to claim revenue expenditure?
is it revenue or capital expenditure?
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Gift(taxability and accounting)
Replies (4)
Its capital expenditure by Proprietor and cannot be claimed as revenue expenditure of the firm.
Debit to Drawings a/c. Cannot be considered as revenue expenditure.
How can a gift be an expenditure for furtherance of business?
Only if the Donee is employee of the firm!!
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