18 August 2008
as we know that if there is no employee then there will not be any FBT. but in case two companies (A ltd. & Y Ltd.) incorporates an AOP for specific purpose & there is an agreement that salary will be give by such companies on behalf of AOP, in fact there is no new appointment of employees in AOP, while employees of A Ltd & B ltd. are doing the job for AOP work.
in the given case if any re-imbursment is made by AOP to such employees of A & B Ltd. & such exp. are liable for FBT like conveyance, tele. ph. etc.
PROB 1 In such case is AOP is liable to pay FBT ? PROB 2 as we know if there are No Employees than no FBT will occur. but in above said case manupulation may be done by making AOP in order to avoid FBT