Dr. Jones (Director) (253 Points)
24 December 2012Is there any list of expenses which a Director is entitled to, which can be put as company expense?
I am the Director of the company and I will be travelling with my wife and kid to other city by airplane. Can I put that expense as company expense?
Please let me know.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 24 December 2012
Only the expenses that are incurred wholly & exclusively for the purpose of carrying on the business of the company are allowed to be expended by the director. The director of the company has to incur the personal expenses from teh remuneration paid by the company to the director.
However as stated by you if the airline expenses is related to teh business of the company then that can be shown as an legitimate expense of teh bsuiness. However other personal expenses incurred by teh company on behalf of the director such as medical expenses, rent free accomodation, provision of car etc... can be considered as legitimate busniess expense.
CAclubindia
