Dear All,
One of my frnd getting salary of Rs. 52000 Per month apart from that he is also reimbursing from company Driver Salary of rs.5000 + Fuel exp.5000monthly .
What would be impact of the same .... is it exp for company pr receipt for employee.....????
Any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee is perquisite in the hands of the Employee and it is expenditure to the company
So in your case the employee is getting the Driver's Salary and the Motor car running Expense, so it is perquisite and the same is expenditure to the company
If I am wrong then tell me the same
As per Sec 17 (2) (iv) Prequisites include:
Any sum paid by the employer in respect of obligation which, but for such payment, would have been payable by assessee. So it is perquisite and the same is expenditure to the company.
This would be if the amount is reimbursed to the employee for all these expenses. Employer will also have to do TDS or there is a provision to bear the tax on the perks.
However, if any expense incurred by employee is the expense during regular course of business of the employer, if he is being reimbursed by the employer he must take a certificate that it is the business expenditure of the employer's business for which reimbursement is given and accordingly accounted for by employer.
CAclubindia
