re-imbursement of expenses

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Sneha (Querist)
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26 December 2009 If the company is paying fixed amount as re-imbursement of expenses such as car & fuel, entertainment.. then what is tax implication ?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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26 December 2009 On the one hand it is said to be a Reimbursement. Reimbursement is always on production of bills. Also, the amount of such reimbursement is fixed. It can be perceived as Reimbursement of expenses subject to a maximum ceiling. Further, in case the amount spent is for official purposes then it is free from tax otherwise it may be treated as a perks in the hands of the receipient.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 December 2009 Yes, If it is offical purpose it is not taxable,if it personal or partly personal & partly offical the perks valuation rules applicable

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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27 December 2009 yes,agree with experts

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