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Liquor bill taxability on Business trip settlement

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VIJAY

Commercial manager

49 Points Posted on 12 October 2022

Dear All,

Greetings!!.

We have come across a situation, where one of our employee went for business trip from HYD to PUNE

during the business trip he purchase liquor worth of 5000 Rs, and he is requesting for the total bill exemption from taxable portion of settlement (8000/-.

now i request expert opinion and taxability for the same.

Note: There is no specific policy for T&E in our case.

Thanks in advance

Replies (3)

Quick Summary

This discussion addresses whether liquor purchased during a business trip can be claimed as a tax-exempt expense in a business trip settlement. An employee expensed liquor worth Rs 5000 as part of an Rs 8000 total bill. Without a specific company policy on travel and entertainment expenses, the consensus is that liquor consumption is generally not allowed for tax deduction.