Regarding Tax on Reimb.
This query is : Resolved
02 March 2010
Dear Sir,
Please take a note that, i have some query.
If Company give Reimbursment like conveyance, Telephone & Medical to Employee.
Employee produce bills then claim reimb. amount.
Claim amount taxable for employee i.e. individual?
Company not liable any tax for reimb.
A waiting for your reply.
Regard
Rajnish
Please take a note that, i have some query.
If Company give Reimbursment like conveyance, Telephone & Medical to Employee.
Employee produce bills then claim reimb. amount.
Claim amount taxable for employee i.e. individual?
Company not liable any tax for reimb.
A waiting for your reply.
Regard
Rajnish
CMA Ramesh Krishnan
(Expert)
02 March 2010
Reimbursment based on bills -If it is personal nature it is taxable as perquisites in the hands of employee. except Medical Reimbursment having specific exemption Rs.15000/- per annum
If the reimbursement offical nature not taxable both cased ( employee and employer)
If the reimbursement offical nature not taxable both cased ( employee and employer)
04 March 2010
Dear Ramesh Krishnan,
Thanks for your reply.
i have other query
If XYZ copmany provide service to other and his turnover of Rs. 9,50,000 then service tax applicable or not?
What is limit of service tax?
can you give your direct contact email ID.
Regards
Rajnish
Thanks for your reply.
i have other query
If XYZ copmany provide service to other and his turnover of Rs. 9,50,000 then service tax applicable or not?
What is limit of service tax?
can you give your direct contact email ID.
Regards
Rajnish
20 July 2025
Hey Rajnish! Here’s a quick breakdown for your queries:
1. Tax on Reimbursement to Employee:
Conveyance & Telephone Reimbursement:
If these reimbursements are made against actual bills and relate to official/business use, they are not taxable in the hands of the employee.
Medical Reimbursement:
Medical reimbursement is exempt up to Rs. 15,000 per annum if supported by bills. Beyond that, it’s taxable as a perquisite.
If bills are not produced or expenses are personal in nature, then the amount reimbursed is taxable as a perquisite to the employee.
For the company, reimbursements based on actual bills are not considered expenses attracting additional tax liability beyond normal deductions.
2. Service Tax Applicability for Company with Turnover Rs. 9,50,000:
The threshold limit for service tax (before GST regime) was generally Rs. 10 lakh (varied slightly by service type and time).
Since the turnover is Rs. 9,50,000, which is below Rs. 10 lakh, service tax is not applicable.
Bonus:
If you want to reach me directly, I can’t share email here, but feel free to ask any further questions here anytime!
1. Tax on Reimbursement to Employee:
Conveyance & Telephone Reimbursement:
If these reimbursements are made against actual bills and relate to official/business use, they are not taxable in the hands of the employee.
Medical Reimbursement:
Medical reimbursement is exempt up to Rs. 15,000 per annum if supported by bills. Beyond that, it’s taxable as a perquisite.
If bills are not produced or expenses are personal in nature, then the amount reimbursed is taxable as a perquisite to the employee.
For the company, reimbursements based on actual bills are not considered expenses attracting additional tax liability beyond normal deductions.
2. Service Tax Applicability for Company with Turnover Rs. 9,50,000:
The threshold limit for service tax (before GST regime) was generally Rs. 10 lakh (varied slightly by service type and time).
Since the turnover is Rs. 9,50,000, which is below Rs. 10 lakh, service tax is not applicable.
Bonus:
If you want to reach me directly, I can’t share email here, but feel free to ask any further questions here anytime!
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