remibursement of telephone exp
CA Prashant Gupta (DGM (F & A)) (14068 Points)
28 January 2010CA Prashant Gupta (DGM (F & A)) (14068 Points)
28 January 2010
Amir
(Learner)
(4016 Points)
Replied 28 January 2010
Dear Prashant, Expenses will be deducted in the hands of company..
Next question is whether it is taxable in the hands of employees or not??
Answer is for what purpose these expenses are incurred i:e
If these expenses r for official purposes then " Nothing will be taxable" in the hands of employees.
Whereas if these expenses are for Personal purposes then it will be "taxable as perquisite"
The fact that these are fixed have no relevance. Generally Perquisite in the form of reimbusements are not fixed, but it can be fixed if there is a cieling on the reimbusements & ever month actual expenditure exceeds the cieling limit.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India