Treatment of Bribe

Its an illegal expense and hence disallowable....

hey, Dont take any tension. It goes directly to general expenses as client has no other account to show this.

u may debit to general overheads, but subject to scrutiny.. the ame shall be disallowed..

Yes, I have seen the same treatment, amount of bribe has been debited in other expenses account or say sundries expenses account in accounts book.

First of all if you are accounting for bribe, then you shuold also account for the "unaccounted transactions" for which you are paying bribe. You are only concerned about the accounting treatment of bribe. What about the unaccounted income?

Treat it as  show under the head "dogfood expense",in which case most of the assessee's would has this expenditure
 

Hello boss dr to individuals capital account and show as drawings!

its as simple as that ;)

Bribe is like Donation without any tax treatment

Originally posted by : Jagjit Singh
	Bribe is like Donation without any tax treatment

obtain 80G certificate 

debit misc exps and it will never disallow by any income tax officer dont worry ;)

And if any one disallowes it, then pay some bribe to him also and debit that also into misc expense.......

Explaination to section 37(1) of the income tax act says that

For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure.

So it will be surely disallowed in the Computation of income.

If this amount is not much high, then show as General Expense....

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	Explaination to section 37(1) of the income tax act says that   For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to

As an auditor we sholud disallow that type of expenditure..

In practical cases some they are showing them as general expenses, incidental expenses etc.,

Ok, so 1 more simple answer can be that bribe is given to hide your black money or to earn black money........... So it is obviously given from that black money only..

AND WE DONT DO ANY ENTRY OF ANY BLACK MONEY............!!!!!!!!!!!!!!!!!!!