Please Suggest this in Audit Aspect

Dear Priyanka,

Answer of UR query:

1. Advance payment for travelling and car payments require no authorisation of board if of business expenditure. If the same are expenditure of personnel natrue shall count in managerial remuneration and shall be decided by board.

2. Revenue Stamp is required for everybody  who receive cash payment more than Rs.5000.00 and no exemption for director.

3. Your question have conflict in drafting. You said individual have no business but charging commission is also business. He can raise the bill.

Thank You for your helpful replies....

But I would require your help in an area of Advance Payments made to Directors for travelling purpose for which the same vouchers are authorised by the same Directos who are paid for Travalling ... Whether this will do???? or the other Directors will have to authorise ???

It is better if the other directors are aware of the travelling advance, hence their authorisation will be ideal, but again not conclusive evidence.

Verify if the director has submitted his travel Itinerary so as to ensure that the trip is for business purpose only.

the company should be having a policy/ board decision specifying limits upto which authorisation of more than two directors is required.

If the director has not given his itinerary, niether is there any policy, then please consult your senior about what should be done.