VISA EXPENSES OF STAFF

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Hi.. my friend who has joined a company in dubai has a querry.

While preparing the quarterly financial reports, should the visa expenses incurred ifor a new recruit or existing staff be taken on pro rata monthly basis..

 

Replies (11)

If the amount is material, it can be deferred for more than a period. Otherwise, it should be written off to P&L in that quarter itself.

Dear,

Visa exp. is like one time fee....you have to write off all the figure

 

Visa Expenses are incurred by the company generally has expiry after 3 years
Visa expense should be charged to profit and loss account in 3 equal annual installement.
As the payment is made in 1st year itself therefor prepaid expense will come into play.

I agree with Sandeep

VISA EXPS SHOULD BE WRITTEN OFF ACCORDING TO THE VALIDITY OF THE PASSPORT.

YES DEVENDRA SAID RIGHT  VISA EXP. SHOULD BE W/F IN THE PERIOD OF VISA

As per my opinion, Visa Expenses incurred for the new recruit or for the existing staff should be write off on pro rata basis. Although its a one tme expense but as it is having validity of three years. The benefit arising from it will be used for three years.

 

Therefore, your friend can book this expense on pro-rata basis in the quarterly financial results.

It is a prepaid expense and should be written off according to the period of validity of Visa

Hi,

This is again depends on how long an employee stay in or travel to the country for which VISA is obtained.

If the Company is gonna send him only for short period then you need to charge it off in the current period only though the validity may be 3 years or longer than that. and one more thing is there is no guarantee that employee stays with the comapny for the whole VISA valid period.

If the is gonna send the employee for some longer term, then lets say 2 years,and he is bound to bein the same company, defer and amortise.

This issue will come only if it is material. Usually the VISA charges are not that material to defer the charge off.

 

 

VISA Expenses are one time expenses, so it must be write off all the figures to the P&L

 

On the other hand, it has a 3 Year period, than depending upon the policy adopted by the company regarding the writing off the expenses than it can write off according the pro rata basis that is on installment.

It should be charged to P&L. 
1. amount is negligible

2. if employees returned back within short period

3. what if he/she can change jobs during the visa period, will company still be received benefit. so no point to deferred 


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