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Telephone expenses

Tax queries 926 views 5 replies

sir i have a strange question to say the least... i and my father is mostly on the move and not in offce,so whatever calls we both make is from cell,and calls if made from landline is within the free calls limit,so ultimetly we dont have any bill raised on our landline...for the last 6 mnths the total bill amount has been rs.24/- only...

so my question is how to show telephone expmses?both of us have prepaid connection,and as we all no there is no receipt of recharge made,mostlyshould we shift to post paid?but we do make personal calls from the same number...so wil the total bill be acepted as business expenses??

Replies (5)

Yes it is better to have a post paid connection in the firm name to claim the business expenses. We cannot bifurcate which is personal call and which is official cal unless until you identify. Since the amount is very small you need not worry.

Originally posted by : OBULIRAJAN R

Yes it is better to have a post paid connection in the firm name to claim the business expenses. We cannot bifurcate which is personal call and which is official cal unless until you identify. Since the amount is very small you need not worry.

taking the connection in personal namae wount work?as taking it in co name will be cumbersome as it is a pvt ltd co..

No need to convert to it postpaid. you can claim it without evidence because of nature of this expense i.e. prepaid recharge. Just claim it after making proper estimate of bifurcation between personal and business.

If  you want to saw expence of prepaid recharge. You want recharge minimum 100Rs. adn say retailers. please provide me a bill of recharge or you purchase recharge coupon shaw recharge coupon.

If your monthly recharge expenses are little say up to Rs. 1000/- p.m. than no need to go for post paid. You can claim it easily. If you are incurring a high telephone expenses than better to go for post paid.

 

Well for you second question, in case the personal calls are little than you may ignore it else if somebody in firm is asking to bifurcate the bill used for official or personal calls than you can do it easily by applying the reasonable % on total Bill

 

Like you may estimate your personal calls i.e. 20% expense. If your total bill is Rs. 1000/- than charge 80% to office use i.e. Rs. 800/- and balance 20% to Drawings.


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