Imprest account and reimbursements

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This query is : Resolved

Govind Chandiramani (Querist)

03 October 2017 If i give my employee an imprest payment of Rs 10,000 and send him to purchase Printing material for my firm. He purchases the printer and also uses taxi, has lunch etc. from an unregistered dealer. Will i be required to pay tax on RCM?

RAJA P M

RAJA P M (Expert)

03 October 2017 Yes... Exactly... First of seggeregate the expenses. Which consumed by employee that expenses under reimbursement... All other expenses booked in particular head of accounts... Also which under taxable head also it's RCM applicable

Govind Chandiramani

Govind Chandiramani (Querist)

03 October 2017 So what you mean to say is that if i give my employee 10k and ask him to purchase a printer(from an unregistered supplier) in the name of my company, that will be subject to reverse charge. And the expenses incurred by the employee- taxi service, accommodation charges etc. in course of this task will not be subject to GST?

RAJA P M

RAJA P M (Expert)

03 October 2017 Which expenses consumed (Self) by Employee that's Reimbursement of employee.
The printer purchased by employee in company then you ll book it as your Company asset. So, It's not to employee's own expense. So, It's under RCM Bcoz, from URD...

Also other expenses of accommodation, Refreshment are reimbursement is GST not applicable. Bcoz, You ll book it as Travelling expenses...

So,
The expenses are based your books of accounts...
The printer is not booked in Travelling Expenses...
The printer is not booked in Reimbursement....
The printer is not booked in Employee name...

All expenses is not reimbursement expenses. You ll segregate to particular expense head for accounts...

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