FBT-Very urgent clarification on Foreign travel exp for FBT?

This query is : Resolved

CMA. Subhash Kumar Jha (Querist)
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11 December 2008 Dear Sir,

We are a software company. our staff use to travel abroad as per our client's requirements. Subsequently they make the reimbursement of travel exp actually authorised by them.

So at the end of the year we have only few foreign travel exp left in this ledger as most of them are being reimbursed & hence foreign travel exp in our PL is shown as net figure.

Can u clarify, while calculating FBT whether we should take the gross or net foreign travel expenses ?

Thanks & Regards

Subhash Kumar Jha

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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11 December 2008 Conveyance, Tour and Travel - 115WB(2)(F)/(o) - includes Travelling expenditure/ conveyance expenditure / tour or travel expenditure incurred in resoect of a project assigned by a client which is later on reimbursed by the client.

You are covered by the above, so should pay FBT on the Gross Amount.