MILIND GUMASTE (AM) (108 Points)
03 August 2011Dear Friends
We pay site allowance per day to our service engineers for no. of days worked on customer sites. This is termed as site allowance in our HR policy.
Whether this allowance is taxable ? if yes and then under which head we should pay to make this payment non taxable in the hands of the employee ?
Pl revert asap
Thanx
Milind
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 04 August 2011
Hi Milind
Since there is emplyer - employee relationship, the above payment is to be covered under the head salary. Site allowance will be taxable u/s 17 in the hands of your employee.
CAclubindia
