Accounts-Pvt.Ltd

ravi (senior accountant) (507 Points)

12 February 2011  

Pvt.Co.

Food Allowance 

In our company we give fixed food allowance like Rs.50 per employee. Can anybody pls suggest us what is the best way of to prove the transaction like should we ask any bill or is it enough that we take employee sign on a voucher.  What is the correct procedure to obtain evidence for such transactions pls suggest.

Mess Expenditure

We also provide food (meals) to our employees for that we purchase provisions like rice, dall, milk etc we purchase it from various small and petty shopkeepers who does not provide us proper bills instead they give us estimates, a paper which only contains sign and name of the shop accross the bill sometimes cash bill, can such type of evidence gathered is accepted under income tax?  if not pls suggest us what is best way of procuring the bills because at the year end we need to claim such expenses under income tax. I thank very much all the members of CA club for giving this support