26 December 2009
If the company is paying fixed amount as re-imbursement of expenses such as car & fuel, entertainment.. then what is tax implication ?
26 December 2009
On the one hand it is said to be a Reimbursement. Reimbursement is always on production of bills. Also, the amount of such reimbursement is fixed. It can be perceived as Reimbursement of expenses subject to a maximum ceiling. Further, in case the amount spent is for official purposes then it is free from tax otherwise it may be treated as a perks in the hands of the receipient.
26 December 2009
Yes, If it is offical purpose it is not taxable,if it personal or partly personal & partly offical the perks valuation rules applicable
CAclubindia
