it should be debited to profit & loss a/c

You can capitalise on above Rs 5000/- in line less than that should be debited to P/L account , which comes under the concept of materiality....which varies company to company  

Entire amount claimed by the employee to be written off in the p&l account..It form part of salary expense to the company.

debit to profit and loss account as it's an special incentives to employees and taxable in their hand.

It's an exp for company as asset is not in the control of company ( since company can  not take back his Rs. 6,000 or the cell phone from the employee once the employee leave the organization).

If company has an control (right) over the same (i.e employee has to surrender the cell phone once he leave the organiz ) it would be an asset for company.

Also it's depend upon the size of company and materiality, company can have their own asset capetilization policy and even if the transc is in capital in nature but not material and is against the company policy - Company can exp out the same.

 Regards,

Mayur

The mobile phone given to employees should be treated as perk to employee , hence charged to P& L as personnel cost . 

WHEN EMPLOYEE GIVE MOBILE FOR ITS DRIVER IS TAXABLE OR NOT

In My openion the Amount of Rs. 6000/- should be charged to P&L A/c just like a reimbursement, one of the reason behind this is that the billing is also not  in the name of the company and hence co. can not treat it as its fixed asset.

What happens when the employee leaves the organisation? Does the company take back the phone or lets him keep. If the company takes it back, you can say the risk and reward of the asset lies with the company which proves as a ground to capitalise as it would fall within the definition of asset as in AS 10.

If otherwise, it should be charged to P&L

thank you everyone, we have charged the amount to p&l ac meanwhile we got into discussion whether it is liable for tax in the hands of employeee? but then we cocluded it as as the company is providing a post paid simcard also in CUG group for use of official purpose and every employee certifies that they are official calls we came to conclusion to not to make it liable for tax in hands of employees also. thank you all for your quick response.. it helped me alot...