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?
3 Replies
CA PRABHAKAR JHA
(ACA)
(313 Points)
Replied 28 December 2011
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
Sakshi Gupta
(student)
(36 Points)
Replied 28 December 2011
The entertainment Allowance given to employee is used by him for entertaining official guests
CA PRABHAKAR JHA
(ACA)
(313 Points)
Replied 28 December 2011
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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