One of the senior level employee of my company pays Hotel Bill of above 1 lac (single bill billed in company's name) in cash. He claims the same as reimbursement from company as his tour and travel bill. The company reimburses the same to him by NEFT to his account. Whether the same be allowable expenditure or will be disallowed u/s 40A(3)?
Menu
Cash expenditure by employee reimbursed by company
Replies (1)
The case is litigative and I am sure more than one views might be possible in this regard. However in my opinion the expenditure will be disallowed u/s 40A(3) due to following reasons:
1. Hotel Bill is in the name of company and it will clearly show that reciept was made in cash by Hotel.
2. Expenditure is incurred by the company, and the senior level employee has made the payment on behalf of company only in representative category. Hence it was sole resposibility of the company to make sure that payment should have been made through banking channel.
Recent Topics :
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
Related Topics :
CAclubindia
