Hi,
I am a student, and I have been studying compensation structure for sales personnel.
Based on a compensation structure I had planned for a salesperson with the help of a CA, some questions were put to me in class. I have already consulted the CA on the same and have put the answers in brackets.
Could anyone help in clarifying the same with further details? It will be helpful if you give any limits in terms of the amount that could potentially be reimbursed in such situations or if there are any limits.
The intention in all these cases is to reduce tax liability
1.
The salesperson has a Flat which is in his mother's name. There is a Joint A/C between him and his mother. He is staying along with his mother in this flat but he is paying rent to his mother. He receives an acknowledgement for this i.e. Receipt of Payment of Rent from his mother and he produces the same. In this situation what will be the maximum limit till which he can claim the reimbursement?
(ANSWER OBTAINED: CANNOT BE REIMBURSED)
2.
If he is using Company's Uniform and sending it to Laundry. Can he claim for Laundry exps reimbursement?
(ANSWER OBTAINED: CAN CLAIM REIMBURSEMENT)
3.
Petrol Expenses if he is already using Company's Travelling facility (eg: Car)
(ANSWER OBTAINED: CAN CLAIM REIMBURSEMENT)
4.
Soft Furnishing Reimbursement ( Curtains, Chair Covers, Cushions, etc)
(ANSWER OBTAINED: CANNOT BE REIMBURSED)
5.
Subscripttttttion to Business Periodicals for the purpose of improving his knowledge. (Eg. Wall street journal etc.)
(ANSWER OBTAINED: CANNOT BE REIMBURSED)
6.
Obtaining a Personality Makeover i.e a haircut etc. with the intention of being more presentable at his job.
(ANSWER OBTAINED: CANNOT BE REIMBURSED)
Any observations will be helpful.
Thank you.