Telephone Bills Employee Reimbursement
This query is : Resolved
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
25 July 2016
can someone let me know about this
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.
---
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Transport service POS
- E INVOICE, E-WAY, INVOICE
- To Whom the Invoice should be Raise to
- GSTR 9C- Table 9
- INCOME TAX NOTICE QUESTION
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Sale Proceed of Urban Agri. Land received in Advance in FY 24-25 but Registry is made in next year
- Form 104 stamp paper deed
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- Whether to file ITC 03 for downward GST rate revision - Reg.
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
