27 January 2009
If a company 'X' pays for expenditure of AOP 'Y' and later gets it reimbursed( assuming there is no cost sharing agreement between the two ),then who is liable to pay FBT on the above expenditure ?
27 January 2009
In my opinion AOP Y is liable to pay FBT, because for FBT relationship of employer & employee is must. So in your case Company X pays on behalf of AOP Y, that means expenditure is incurred for employees of AOP Y.
CAclubindia
