Documentation to Substantiate Foreign Travel as Business Expense During Assessment

[Ramanathan Seshan]

Dear Experts,

What documents should be maintained to justify that foreign travel by directors and employees was for business purposes (such as meetings with potential partners and plant visits) and not a personal expense, in case of scrutiny or assessment by the AO?

Regards,

S Ram

AI Summary

Foreign Business Travel Expenses: Comprehensive Documentation Essential for Substantiating Tax Deductions and Compliance Requirements A discussion forum explores documentation requirements for justifying foreign business travel expenses during tax assessments. Key recommendations include maintaining comprehensive records such as travel itineraries, meeting agendas, authorization documents, correspondence, invoices, travel reports, and payment records. The documentation should clearly demonstrate business purpose, segregate personal expenses, and provide evidence of business outcomes to support tax deduction claims.