Telephone expenses

Tax queries 858 views 5 replies

lexbery

227 Points Joined January 2011

sir i have a strange question to say the least... i and my father is mostly on the move and not in offce,so whatever calls we both make is from cell,and calls if made from landline is within the free calls limit,so ultimetly we dont have any bill raised on our landline...for the last 6 mnths the total bill amount has been rs.24/- only...

so my question is how to show telephone expmses?both of us have prepaid connection,and as we all no there is no receipt of recharge made,mostlyshould we shift to post paid?but we do make personal calls from the same number...so wil the total bill be acepted as business expenses??

Replies (5)

ACMA Obulirajan R

M.Com ACMA

1119 Points Joined April 2009

Yes it is better to have a post paid connection in the firm name to claim the business expenses. We cannot bifurcate which is personal call and which is official cal unless until you identify. Since the amount is very small you need not worry.

lexbery

227 Points Joined January 2011

Originally posted by : OBULIRAJAN R
	Yes it is better to have a post paid connection in the firm name to claim the business expenses. We cannot bifurcate which is personal call and which is official cal unless until you identify. Since the amount is very small you need not worry.

taking the connection in personal namae wount work?as taking it in co name will be cumbersome as it is a pvt ltd co..

Shashi Bhushan

Learner Jalandhar

996 Points Joined February 2009

No need to convert to it postpaid. you can claim it without evidence because of nature of this expense i.e. prepaid recharge. Just claim it after making proper estimate of bifurcation between personal and business.

johnlinkan

teacher

25 Points Joined October 2011

If you want to saw expence of prepaid recharge. You want recharge minimum 100Rs. adn say retailers. please provide me a bill of recharge or you purchase recharge coupon shaw recharge coupon.

Rahul Gupta

Chartered Accountant

644 Points Joined November 2010

If your monthly recharge expenses are little say up to Rs. 1000/- p.m. than no need to go for post paid. You can claim it easily. If you are incurring a high telephone expenses than better to go for post paid.

Well for you second question, in case the personal calls are little than you may ignore it else if somebody in firm is asking to bifurcate the bill used for official or personal calls than you can do it easily by applying the reasonable % on total Bill

Like you may estimate your personal calls i.e. 20% expense. If your total bill is Rs. 1000/- than charge 80% to office use i.e. Rs. 800/- and balance 20% to Drawings.