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What are allowable and dis-allowable expenditure?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 preetham asked almost 3 years ago

Hi May I know, What are allowable and dis-allowable expenditure?

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7 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered over 2 years ago

Expenses incurred solely for business purposes are generally allowable. This expenditure is usually referred to as 'Wholly & Exclusively'. Disallowable Deductions.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

0 votes We have just run an internal bingo game for all the staff in order to incentivise and increase attendance in our stores. It run in the usual "bingo" way, a number was drawn each day of the week and the first to get a full house wins a one week all expenses holiday for two paid for by the company. The condition was that you needed a pre-determined level of attendance and were not late more than three times.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Chirag answered almost 3 years ago

--Expenses incurred solely for business purposes are generally allowable. This expenditure is usually referred to as 'Wholly & Exclusively' . Allowable expenditures are allowed to claim as business expenditure under income tax act. --Expenditure which is not wholly and exclusively intended for trade purposes, is not allowable and called dis allowable expenditure. Dis allowable expenditures are not allowed to claim as business expenditure from the income In nutshell Allowable expenses are expenses that can be deducted from your income or gain hence no tax liability...Disallowable expenses on the other hand are expenses that are charged to the business accounts (P&L account) and are not tax deductable hence tax liability. Allowable Expenses 1. Contributions to pension schemes 2. Subscriptions to professional bodies 3. Mileage allowances 4. Travel expenses 5. Expenses which employees may incur in relation to employment 6. Capital allowances on plant and machinery 7. Accountancy expenses 8. Advertising 9. Bank charges 10. Computer costs Disallowed Expenses. 1. Cash payment Exceeding Rs.20000/- in a day,and exceeding Rs.35000/- for payment to Transporter. 2. Payment made for any Agricultural products. 3. Payment made for Fish otr Fish Products. 4. Products for Horticulture. 5. Any Expenses for private purpose, Like Entertaining Customers,Donation to Political parties. 6. Payment of Statutory Penalties. 7. Depreciation. 8. Health Insurance. 9. Any Expenses of Previous year considered in the current Financial year.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

We have just run an internal bingo game for all the staff in order to incentivise and increase attendance in our stores. It run in the usual "bingo" way, a number was drawn each day of the week and the first to get a full house wins a one week all expenses holiday for two paid for by the company. The condition was that you needed a pre-determined level of attendance and were not late more than three times. If you didn't meet the conditions, you won gift vouchers and the game played on.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered almost 3 years ago

**Allowable and Disallowable Expenses Allowable Expenditure Disallowable Expenditure** Staff related costs Not wholly & exclusively incurred for trade Employers NIC Your own wages, salary or drawings Insurance The initial cost of buildings Rents Council tax relating to the private use Heating, Lighting, Rates of your home Security Alterations & improvements to business General maintenance of: premises (Capital Allowances) business premises and machinery Travel between your home & workplace Telephone, mobiles Entertaining Postage, printing Legal fees and fines if you break the law Trade & professional journals General reserves for bad debts Car insurance, servicing, repairs The cost of clothes which could be worn Road fund licence for non-work purposes Petrol/Diesal Payments to clubs, charities Parking fees Depreciation Rail fares, air fares, taxi Capital (Pre-acquisition) Hotels Gifts to customers- £15 max Accommodation & subsistence No food, drink or tobacco unless Advertising, mailshots conspicuous advertising under certain limits Accountancy fees Hire charges for expensive cars Solicitors fees Lease premiums Professional indemnity insurance Theft by Directors & senior staff Unrecoverable debts Interest on business bank loans Bank charges, credit card charges Pre-trading expenditure Use of home as an office Music cds, videos, dvds Laundry Grooming Christmas parties (Up to certain limits) Allowable Deductions Expenses incurred solely for business purposes are generally allowable. This expenditure is usually referred to as 'Wholly & Exclusively'. Disallowable Deductions Expenditure which is not wholly and exclusively intended for trade purposes, is not allowable. An easier way to remember what is allowable is to use the Tax Return itself. On the Tax Return, the Inland Revenue lists the items, which should be included as expenditure items.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

**Allowable and Dis-allowable expenditure** --Expenses incurred solely for business purposes are generally allowable. This expenditure is usually referred to as 'Wholly & Exclusively' . Allowable expenditures are allowed to claim as business expenditure under income tax act. --Expenditure which is not wholly and exclusively intended for trade purposes, is not allowable and called dis allowable expenditure. Dis allowable expenditures are not allowed to claim as business expenditure from the income In nutshell Allowable expenses are expenses that can be deducted from your income or gain hence no tax liability...Disallowable expenses on the other hand are expenses that are charged to the business accounts (P&L account) and are not tax deductable hence tax liability. **Allowable Expenses** 1. Contributions to pension schemes 2. Subscriptions to professional bodies 3. Mileage allowances 4. Travel expenses 5. Expenses which employees may incur in relation to employment 6. Capital allowances on plant and machinery 7. Accountancy expenses 8. Advertising 9. Bank charges 10. Computer costs **Disallowed Expenses.** 1. Cash payment Exceeding Rs.20000/- in a day,and exceeding Rs.35000/- for payment to Transporter. 2. Payment made for any Agricultural products. 3. Payment made for Fish otr Fish Products. 4. Products for Horticulture. 5. Any Expenses for private purpose, Like Entertaining Customers,Donation to Political parties. 6. Payment of Statutory Penalties. 7. Depreciation. 8. Health Insurance. 9. Any Expenses of Previous year considered in the current Financial year.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 DISHANT answered almost 3 years ago

We have just run an internal bingo game for all the staff in order to incentivise and increase attendance in our stores. It run in the usual "bingo" way, a number was drawn each day of the week and the first to get a full house wins a one week all expenses holiday for two paid for by the company. The condition was that you needed a pre-determined level of attendance and were not late more than three times. If you didn't meet the conditions, you won gift vouchers and the game played on. There was also a booby prize for the person with the least amount of numbers - a trip to the theatre plus a meal. It's just been won by an employee who passed the conditions. My question - which you've probably already guessed...are the cost of the prizes an allowable deduction for corporation tax? Can it be

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