29 July 2010
If an employee of company paying bills & other expenditures of a company thrugh his own credit card & taking the reimbursement of same from the company,Is there any problem under I.T act & Co. Act??????
29 July 2010
There may not be any problem. However, if the AO raises any query on the nature of such credits, the employee must be able to establish the fact that the amount is in the nature of reimbursement & not income. It would be advisable to maintain copies of such bills incurred on behalf of the company on which reimbursement was claimed.
Today most of the banks offer Employee Reimbursement Account (ERA) which is attached to the employees salary account and used by companies to credit reimbursement to the employees. It would be advisable to route all such reimbursements through ERA.
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