Deduction - relative - Study abroad, Service Tax

[Rakesh Verma]

Assessee a partnership firm doing only exports sent relative of a partner to study marketting sterategy course in UK and claimed expenses , what is the position of its allowablity

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[DEV KUMAR KOTHARI]

Apparently it is personal expense and not allowable. The position will be different if relative is an employee, and he is sent to undertake studies with certain commercially expedient conditions in interest of business of the firm for utilizaation of benefit of such studies. Ut most care is required to establish commercial exepdiency and to satisfy the test of wholly and exclusively for the prupose of the business of firm.