05 May 2009
Company is paying travelling, Hotel etc exp of two director ( One is Managing director and other is just director, he not doing anywork in company )
Whether exp of both director are allowable for fbt or not
and if it not allowable for fbt, whether these exp are include in their Remuneration amount or not.
plz give full detail on exp of director for FBT purpose
05 May 2009
If hotel bills are in the name of employer there is F.B.T. Also, it will be applicabe for both the directors if the expenses incurred were for official purposes.
05 May 2009
It is very subjective to decide whether the director has worked or not. As per the provisions of FBT, the expenses incurred should be for official purposes. If they can adjudged as spent for other than official purposes, then not liable for FBT. Hope this clarifies your doubt.
CAclubindia
