FBT on reimbursement

This query is : Resolved

HEMANT (Querist)
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12 March 2008 Dear Sir,
We are a research firm, where our staffs members are suppose to travel and incur lot of other out of pocket expense like Telephone/conveyance etc. on behalf of the client. We get the reimbursement of these entire amounts from the clients on actual basis.

We as Company are under obligations to pay FBT on all these expenses; can we charge this too from our clients along with the basic amount? Is this legal? Like in case of sweat equity or ESOP section 115WCA allows employer to recover the actual FBT amount.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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12 March 2008 Legally you cant claim the FBT from your client. But with mutual understanding you can claim it from your client.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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12 March 2008 LEGALLY YOU CANNOT CLAIM

HEMANT

HEMANT (Querist)
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12 March 2008 Even if our agreement says that client will reimburse the actual cost including the incidence of FBT. Pl. Revert

HEMANT

HEMANT (Querist)
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14 March 2008 eeeeeee

CA.Aman Dugar

CA.Aman Dugar (Expert)
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17 March 2008 You r liable to FBT on such expenses.You can claim it from your client but just do it by suitably adjusting your fees.Dont show it as a separate item in the bill you raise.
However in case of professionals such expenses are not liable to FBT.

HEMANT

HEMANT (Querist)
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18 March 2008 Thanks

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