Where the gift given to an employee should be shown i.e in Staff Welfare or Gift & Represention.
Please Suggest me Proper Head with Justification as the gift is given to a single employee only.
Thanx in advance
as it is given to single employee then will it will be appropriate to show it as Staff Welfare rather than Gift & Representation.
staff welfare will be the appropriate head according to me.
is the employee covered ub\nder sec. 40 (a)(2) ?
| Originally posted by :Naveen Chand Khulve | ||
| " | Where the gift given to an employee should be shown i.e in Staff Welfare or Gift & Represention. Please Suggest me Proper Head with Justification as the gift is given to a single employee only. Thanx in advance |
" |
Hi,
Its better Debit to Staff Welfare(Expense incurred to motivate Employees) rather than Gifts and Compliments (Expense wrt Outsiders, clients and Visitors)
The reason is when u consider the ledger balances for computation of FBT. 20% of Staff Welfare Expense will qualify for FBT but in case of Gifts and Compliments 50% of the value will get qualified for FBT.
Regards..
It shud be debited to Gift......showing it as a staff welfare will amount to misrepresentation of Facts......
FBT will be chargable @ 50% valuation.
>>Vipul Garg
i shd go wid vipul sir answer...!!
Yes it should be under gift rather than staff welfare.
Wha if we gift to our clint a bouquet?? Under which expenses it goes
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