Please Help: reimbursement

Posted Date : 22-Feb-2013 , 01:34:53 pm | Posted By Prince Sharma

I am working with a company in which our directors can make payment in cash amounted rs 33000 for his hotel stay the amount is exceeding 20000 i.e violation of sec 40a(3) since he said that the bill is on the name of director not on the name of company
i agreed with him now my question is that whether the company can reimburse the same by account payee cheque to our directors

Category : Income Tax | Answers : 2 | Comments : 1 | Hits : 144

Answers

Answer By: AKHIL MAHESHWARI

Dear Prince, in my opinion, the company can reimburse the same by account payee cheque and thereafter it'll not be considered as violation of sec. 40A(3) as the assessee company is doing expenditure as per the provisions of law...

Answer By: naga rakesh

YES THE ASSESSEE HERE IS THE CO SO THE COMPANY HAS TO PAY AS PER THE PROVISIONS OF THE LAW IT HAS TO REIMBURSE THE AMOUNT THROUGH ACCOUNT PAYEE CHEQUE