Naveen Chand Khulve (CA) (1521 Points)
20 March 2009Where the gift given to an employee should be shown i.e in Staff Welfare or Gift & Represention.
Please Suggest me Proper Head with Justification as the gift is given to a single employee only.
Thanx in advance
as it is given to single employee then will it will be appropriate to show it as Staff Welfare rather than Gift & Representation.
kaustubh
(CA, CS , CFM)
(293 Points)
Replied 20 March 2009
staff welfare will be the appropriate head according to me.
is the employee covered ub\nder sec. 40 (a)(2) ?
Nandoo
(CA Final Student)
(46 Points)
Replied 20 March 2009
| Originally posted by :Naveen Chand Khulve | ||
| " | Where the gift given to an employee should be shown i.e in Staff Welfare or Gift & Represention. Please Suggest me Proper Head with Justification as the gift is given to a single employee only. Thanx in advance |
" |
Hi,
Its better Debit to Staff Welfare(Expense incurred to motivate Employees) rather than Gifts and Compliments (Expense wrt Outsiders, clients and Visitors)
The reason is when u consider the ledger balances for computation of FBT. 20% of Staff Welfare Expense will qualify for FBT but in case of Gifts and Compliments 50% of the value will get qualified for FBT.
Regards..
CA Deepak Chhabra
(Practice)
(66 Points)
Replied 26 March 2009
Yes it should be under gift rather than staff welfare.
sab Nam
(4 Points)
Replied 16 October 2023
Wha if we gift to our clint a bouquet?? Under which expenses it goes
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