Urgent query

402 views 2 replies

CA, CS(Professional) ROHAN

B.com CA CS Sr officer -Finance & MIS

309 Points Joined August 2009

in case were a employee of the company pays vehicle repair charges of the company through his own personal credit card. What are the implications as far as company law is concerned and tds is concernd.The bill amount is around 16000 Rs .

Is it necessary to have a resolution in place for inurring of such expenses by employee for such expenses

Is the employee liable to deduct TDS( on behalf of the company, as he is an individual) in case there is a AMC contract with the vehicle repairing company for car servicing etc.

kindly provide your sanswers and views

Replies (2)

Rikin

Learner

140 Points Joined August 2008

1. Employee will not liable to TDS...Company should reimburse him repair charges spent by him on behalf of Company.

2. Company must have to demand Bills on his own name for that repair charges from "vehicle repair entity-firm/ individual/company whatever it is"

3. And deduct TDS accordingly.

4. Expense would be debited under "Repairs and Maintenance- Vehicles"

Thanks and Regards.

CA, CS(Professional) ROHAN

B.com CA CS Sr officer -Finance & MIS

309 Points Joined August 2009

thanx rikin ..but what about the resolution is it required in case if the person making such payment is an employee of the company or an employee of the group company. as nothin is mentioned in the letter of appointment of such employee.