21 April 2009
Pl help ASAP. We are contemplating to provide as part of managerial remuneration to Director, medical reimbursement of Rs.15000 p.a. and reimbursement of actual telephone bills (residential and mobile). Do they attract FBT? Also if we change the mobile connection to the company name (since it is being used for company purpose only) can we avoid FBT. Pl advise.
21 April 2009
both payment/expenses attract FBT. there is no differance for connect. in company name and used for official purpose.med. reimb. upto 15000/- attract FBT in hand of company and above it taxable in the hands of employee.