FBT liability

This query is : Resolved 

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

18 August 2008 No employee, No FBT.

18 August 2008 Yes if there is no employee at al then no question of FBT.




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