Kindly advice on below := Our Organisation has recently proposed a Mobile Policy wherein we propose to pay every employee upto Rs. 10000/- for purchase of new mobile handsets. My queries are as below :-
1. If employee purchases mobile in his/her own name and submit the bill to us for reimbursement, will that add to their taxable Income or perk value or else what will be the accounting entry for this.
2. If employee purchases the mobile in company's name, then what will be the accounting entry.
05 December 2009
The asset belongs to who ever is paying for it, a reimbursement is only a temporay accomodation for payment by the final payer, so u may account for the asset accordingly.
CAclubindia
