company pays personal travelling and club bills of director. will the expenses be shown as perquisite in the directors computation? will the expenses be added back in the company's books while IT computation?
Arundhati Raychaudhuri (no designation) (340 Points)
06 August 2012company pays personal travelling and club bills of director. will the expenses be shown as perquisite in the directors computation? will the expenses be added back in the company's books while IT computation?
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 06 August 2012
Ye, for the directors his personal exps met by the co. is a Perk.
and the exps so made for prsonal purpose of the directors will be added back to the company's income, because only the exps made to earn the income can be claimed as deduction.
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