Will upload in chat as i am.not being able here

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Answered 11 days AfterApr 28, 2021

Answer To: Will upload in chat as i am.not being able here

Harshit answered on May 10 2021
140 Votes
Answer to Question 1
(a)
· The reimbursement of mobile bill of $220 (inc of GST) is a taxable sup
ply due to which GST is applicable on the same. The employer will be eligible to the GST ITC on the same as the phone is used by Alan for business purpose.
Input tax credit on such reimbursement = 1/11 * (220*12)
= $240
· The mobile phone handset of $2,000 (inc of GST) will be treated as being done for business purpose and therefore GST ITC will be available on the same.
Alternatively it can be assumed to be a fringe benefit extended to the employees and the company will be charged with the fringe benefit tax.
· As per the close nexus test, when the employer...
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