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remibursement of telephone exp
Dear All
a company is paying quarterly reimbursement of telephone exp. but these are fixed like every quarter only 3000/- will be paid but company get bill for telephone exp from person. My query is whether it is deductible in hand of comapny or it will be taxable in hand of employee as these are fixed.
Replies (2)
Dear Prashant, Expenses will be deducted in the hands of company..
Next question is whether it is taxable in the hands of employees or not??
Answer is for what purpose these expenses are incurred i:e
If these expenses r for official purposes then " Nothing will be taxable" in the hands of employees.
Whereas if these expenses are for Personal purposes then it will be "taxable as perquisite"
The fact that these are fixed have no relevance. Generally Perquisite in the form of reimbusements are not fixed, but it can be fixed if there is a cieling on the reimbusements & ever month actual expenditure exceeds the cieling limit.
Yes Amir You are right
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