calculation of fb value

This query is : Resolved

CA Prabhakar Dubey (Querist)
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12 June 2008 Respected Members,

One of the client incurred foreing exps on travelling which includes both Hotels & Food exps. also.

However the client charging all exps. to Travelling exps. foreign a/c only. Due to that FB value calculated 5% on total exps.

Whether treatment is correct as per the Accounting and Income tax? Please reply the soon.

Regards,

Prabhakar

C.A Rohit Gambhir

C.A Rohit Gambhir (Expert)
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13 June 2008 The treatment is not correct because on Hotel, boarding & lodging FB Value rate is 20% unless this falls under specified category like software, etc where rate is 5%