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Is Exam / Certification fee of directors allowed as business expenditure

Lila (Job) (521 Points)

06 June 2025

Is exam fee / certificate renewal fee paid for director's allowed as business expenditure? Exam fee was paid to obtain additional certification by director for business. Another renewal fee was paid to renew an old certification (business related education). Kindly share your opinion if these will be allowed as business expenditure.

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8040 Points)
Replied 06 June 2025

The eligibility of exam fees and certificate renewal fees paid for a director as business expenditure depends on various factors, including the nature of the certification and its direct relevance to the business.

Generally, if the certification enhances the director's ability to contribute to the company's operations and is necessary for the business, it may be considered an allowable business expense.

However, tax authorities may scrutinize such expenses to determine whether they are personal in nature or directly related to business needs. If the certification is essential for the director's role and benefits the company, it strengthens the case for claiming it as a business expense.