Disllowances??

This query is : Resolved

CA Nitin Wadhwani (Querist)
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09 August 2008 An employee who paid by cash in excess of 20000/- against one singele invoice, to any hotel as lodging expenses, and he gets the same reimbursed from his employer, will that expenses get disallwed under Sec 40(A)(3).

Please clarify more clearly.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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09 August 2008 Yes it is taxable, as the payment is reimbursed in cash on account of companies expenses.

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)
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10 August 2008 No it will not be taxable in the hands of company as it is the employee who have paid the exp. & get the same reimbursed from the co.

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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10 August 2008 No Specificity Is There Is There In Answers Of Experts
Plz Anyone Could Really Answer This Question With Relevant Details??

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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16 August 2008 It is not taxable because hotel is issueing bill in the name of employee only and amount is also paid by the employee. Again employee are reimburse for that expenses. Submission of Bill to employer for reimbursement may or may not reqire. So it is reimbursement of expenses of employees by employer.

regards,
Sandeep Aggarwal

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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19 August 2008 But Suppose If The Co. Pays The Employee In Cash Then?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 April 2012 If the company reimburses the amount in cash, then the amount will be disallowed.

The mode of payment has to be seen from the point of company and not the employee.

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