Telephone Bill Employee Reimbursement

This query is : Resolved 

30 July 2016 If employee purchase a Telephone connection of his name for company work and company pay directly to vendor(Tata DoCoMo,Airtel,Vodafone) etc. Can some one let me there is any doubt in accounting. Please Suggest

01 August 2016 The arrangement of employee purchasing the telephone and getting reimbursement from the company should be as per the policy of the company and the same should be applicable to all the employees. If it is given to only one employees / few employees, the same would be treated as personal expenses.

03 August 2016 simply let me know can company pay payment directly

03 August 2016 simply let me know can company pay payment directly to vendor if employee purchase connection with his own name and used for company

04 August 2016 Yes the company can directly pay to the vendor.

06 August 2016 Thanks a lot mam, request to you please keep in touch for future queries

30 August 2016 Dear Team, mam please resolved this enquiry please let me know our company has service provider company there is any service tax liable on foreign payment received against advertisement Services given to client. suppose client had done a payment from foreign but we found that he has run indian associate firm/partnership firm in india. but the data of this firm is not available on the government sites and we can't rectify that the same firm run that person. please suggest there is any tax liability on our company.

30 August 2016 In such situation, where you are aware that the client has a associate / partnership firm in India, you can obtain the PAN or find out whether they have any permanent establishment in India. If you are aware that there is permanent establishment, TDS has to be deducted. However, in case of online payments made to Google or Facebook in most of the cases TDS are not deducted and the payment is made by credit / debit card. In such cases, TDS need not be deducted but a note has to be provided in the financial statement.

If you are happy with my response. Kindly like it.

14 September 2016 mam my query related with service tax not for TDS.. so please also again read my query and response again please

02 August 2025 You're welcome! 😊

To summarize for clarity:

* **If an employee takes a phone connection in their own name for official use, the company can directly pay the vendor.**
* This is fine **provided there is a clear company policy** covering this reimbursement or payment process.
* The policy should ideally apply uniformly and ensure the expense is truly for business use.
* Without such a policy or uniform application, the payment may be considered a personal expense or a perquisite.

Feel free to reach out anytime for any more queries — happy to help! 🙌


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