hello friends,
i have following questions... Can a director...
1) Pay the rent of office by cash (8000rs) and later take it by check after 6 months etc?
2) Buy a pc (as using a 5 yr old lappy now) with his credit card and show it as company expense due to unsufficent funds?
3) Pay for website servers in USA by credit card and later get it back by check as it needs to be paid in USD/monthly and does service tax or anyother tax come into picture here?
thanks
I) Yes but transaction should be supported by valid agreement. No bar in such transaction.
II) No its not permissible. But if you are using the laptop for both company as well as official use then you can expense(capitalise) a part of the laptop cost in the books.
III) Yes you may do it
Whether any taxes come in this matter is a matter of fact.
If you are buying a web server then no problems.
But if you are receiving some service, deduct TDS u/s195 on appropriate income proportion.
NO OFFENCE TO OTHER REPLIES
Sankalp, the laptop is a 5yr old and cannot take more work... and the PC will be used for company's office work only so can we get it now and pay the director later?
and we rent a server to host our websites from a company in USA so what applies? ST or TDS.
Or its better to pay the director more in terms of salary and ask him to pay for server?
CAclubindia
