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Treatment of Bribe

CA Anil Sah (Jr. Manager (F&A) PSU) (139 Points)

11 July 2011

What is the fair treatment of bribe in Accounts and Income tax in case of individual assessee ?

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33 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 July 2011

pay by account payee cheque, after deducting TDS

1 Like

M. N. JHA (CA) (8316 Points)
Replied 11 July 2011

Kya U S bhai. . . . . . Six lag gaya. . .

CA Anil Sah (Jr. Manager (F&A) PSU) (139 Points)
Replied 11 July 2011

HA ha ha great treatment sir.... i mean to say the money is goes out from assesee poket how can accounted the transaction. weather its deducted from capital or any other course of action is avilable .

M. N. JHA (CA) (8316 Points)
Replied 11 July 2011

Bribe account debit to bribee and then bribee account debit to cash. . . . Deduct TDS, take reciept and issue form 16 . . . . . . . Lolz

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 July 2011

digest in some expenses, at last its capital outgo

the reason of such activity is not unknown to yourself, so when the assesee is giving "suvidha shulk" he is entitled to "enjoy the suvidha" as the tax (shulk) is already paid.

Devendra (Chartered Accountant) (4775 Points)
Replied 11 July 2011

If the auditor comes across such expense, then the expenes shall be disallowed.

Regards,

Devendra

CA Anil Sah (Jr. Manager (F&A) PSU) (139 Points)
Replied 11 July 2011

i know its funny and unethical but still its a praticle problem .

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 July 2011

@ anil kumar

if the assessee has followed all the rules and sections, then no question of bribe to anybody, but if he has violated the rules, then he has already taken benefit of the said bribe, so its like "assessment tax". and he does not have right to claim it again in expenses.

no use to discuss these things in public forum, but it should be debited alongwith drawings of the person responsible for these acts.

Mihir (Wealth Manager) (5293 Points)
Replied 12 July 2011

Debit misc expenses or sundries expenses.

CA Ravi Khandelwal (Business) (752 Points)
Replied 12 July 2011

Practically these expenses are found in every company and shown under misc. expenditure head.

Mihir (Wealth Manager) (5293 Points)
Replied 12 July 2011

Auditor should be a fool for not allowing these obvious expenses when the company is dealing with govt authorities like customs, port, where one ought to pay to clear documents in time.