FBT classification foriegn tour
This query is : Resolved
18 June 2008
Foreign Travel by employee
Total Amt consist of:
Daily Allowance
Taxi hire charges in foreign country
Entertainment Expense
Lodging Exp
Telephone Exp
Could u plz bifurcate for the purpose of fbt the abv exp?
Total Amt consist of:
Daily Allowance
Taxi hire charges in foreign country
Entertainment Expense
Lodging Exp
Telephone Exp
Could u plz bifurcate for the purpose of fbt the abv exp?
18 June 2008
1) Daily Allowance:-
As such there no specific classification for the daily allowance but in my suggestion it is to be treated as perdiem and charged under clause (G) of sub section 2 of Section 115WB i.e. Use of hotel, boarding and lodging facilities. @ 20% chargeable and 33.99% Tax. (Read Q no. 79 of circular 8/2005).
2) Taxi hire charges in foreign country:- under "Conveyance" @ 20% and Tax 33.99%
Entertainment Expense:- Under "Entertainment" Charge 20% @ 33.99%
Lodging Exp:- "Use of Hotel boarding & Lodging" 20% @ 33.99%
Telephone Exp:- Under “Use of Telephone” (including mobile) – 20% @ 33.99%
Please note that any of the above expenditure if Taxable in the hands of Employee then in that case there is no FBT liability.
As such there no specific classification for the daily allowance but in my suggestion it is to be treated as perdiem and charged under clause (G) of sub section 2 of Section 115WB i.e. Use of hotel, boarding and lodging facilities. @ 20% chargeable and 33.99% Tax. (Read Q no. 79 of circular 8/2005).
2) Taxi hire charges in foreign country:- under "Conveyance" @ 20% and Tax 33.99%
Entertainment Expense:- Under "Entertainment" Charge 20% @ 33.99%
Lodging Exp:- "Use of Hotel boarding & Lodging" 20% @ 33.99%
Telephone Exp:- Under “Use of Telephone” (including mobile) – 20% @ 33.99%
Please note that any of the above expenditure if Taxable in the hands of Employee then in that case there is no FBT liability.
18 June 2008
Then is there any other expenditure other than air/rail fare under clause Q
19 June 2008
To the best of my Knowledge under clause Q of section 115WB only air/rail fare is included. other expenses, though incurred during the journey (& subject to FBT under the various clauses of sec 115WB) cannot be construed as travel exp.
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