09 May 2008
If a company reimburses the conveyance of the candidates called for the interview, which are recorded under Recruitment Expenses, then is it liable for FBT???? Please send me your opinion or if anyone can forward me the relevant section from the income tax act for this particular query. Thanks
09 May 2008
For FBT there should be employer and employee relationship. In this case this relationship does not exist, so in my opinion FBT is not attracted.
You can see section 115WA, which states that FBT will be charged on expenditure incurred by employer over employees.
09 May 2008
Agreed, But there are many exceptions also. N what if a candidate coming for interview is eventually selected(employed) then what is the treatment under FBT for the reimbursement of the conveyance.
13 May 2008
In my opinion, just by selecting in interview a person don't become employee. he will become the same when he will join the office officially and take charge of his duty.
CAclubindia
