Telephone Bills Employee Reimbursement

This query is : Resolved

Naveen Sharma (Querist)
Follow

22 July 2016 If employee used telephone connection(Tata,Airtel,Vodafone etc) with mention his name on the bill and company pay bill amount directly to telephone company. So there is any issues in accounting. please let me know

Naveen Sharma

Naveen Sharma (Querist)
Follow

25 July 2016 can someone let me know about this

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

02 August 2025 Hey! Here’s a quick rundown:

If the telephone connection is in the employee’s name but the company pays the bill directly to the telecom provider (Tata, Airtel, Vodafone, etc.), **there’s no accounting issue as long as:**

1. The phone is used for **official/business purposes**.
2. The company has a clear **policy or agreement** stating that such payments are business expenses.
3. The company **documents the payment properly** (showing it’s for employee’s official use).

**Why it’s okay:**
Even if the connection is in the employee’s name, since the company is directly paying the vendor, it’s treated as a business expense and should be recorded accordingly.

**Important:**
If this arrangement is only for certain employees without a uniform policy, tax authorities might view the payment as a **perquisite or personal benefit** for the employee, which could have tax implications.

---

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Hanuma Yanduri

Jai Solanki

George Innocent

Ravikumar

sandhya.v

Subscribe Now

Telephone Bills Employee Reimbursement

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

CA Final

Accountant

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY