Please clarify whether FBT is applicable in the following case:
If a company reimburses conveyance expenses incurred by the employee exclusively in relation to work of the client, and later on company gets reimbursement from the client, whether such "out of pocket expenses" are liable to FBT under the head " Conveyance"?
21 March 2009
Yes. As per the Section 115WB (2)(F)/(o) Conveyance expenses incurred in respect of project assigned by a client which is later on reimbursed by the client is included in this section.
CAclubindia
