Entertainment allowance

Tax queries 755 views 3 replies

is there any relevance that if there is any expenditure in entertaining official guests in the context of entertainment allowance? whole amount would be taxable or only the private expenditure would be taxable?

Replies (3)

Your query is not clear, who is spenting money on guests hospitality (you or your company)?

 

Entertain allowance is fixed monetary payment made to you by your company at regular interval, which is fully taxable except the case of government employees.

Then there is no question, who is spending, for what purpose, it will be fully chargeable to tax

The entertainment Allowance given to employee is used by him for entertaining official guests

It is just an application of income, therefore no credit will be given for such expenditure, you have to pay tax on entertainment allowance.

 


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