| Question And Answer | |
|---|---|
| Subject: | Membership of International Trade organisation |
| Category: | Income-Tax |
| Querist: | Manali |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Membership of International Trade organisation, revenue expenditure |
| Date: | December 7, 2022 |
Assessee is partnership firm engaged in the running multispeciality hospit and all partners are doctors. The membership of international trade organization is taken in the name of one of the partners , having object of increasing the networking and focus on B to B business’s or profession. Whether one time membership fee in the name of one of the partner amounting to Rs. 10 lakhs is paid. whether this amount is allowable deduction in the hands of firm ?
There are diverging views on this issue. However, ex abundanti cautela, It would not be ideal to claim the whole amount as deduction in the year of purchase of membership. The claim of expense may be spread out over the period of membership.
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