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query!

kshitij (CA Final) (121 Points)

27 February 2008

dear friends!

i want to know is director and his family's travelling expenses can be debited to p&l A/c..

i also wantto know the tax treatment..

thanks

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3 Replies

(Guest)

Hi, Its not possible only official expenses are to be debited to P&L A/c . In what context you are asking about tasx treatment ?

kshitij (CA Final) (121 Points)
Replied 27 February 2008

actually the trip may be official then it should be debited to p&l butwhat about family expenses..on travelling with director

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 27 February 2008

Practically it is dr. to profit and loss account. Onus is on you to proof that expenditure are for business purpose. Note that FBT will be attracted as usual. You can also pass a special resolution where by you can get approval that travelling expense will be reimburse by company.