If the company provides accommodation to its employee in the financial year 2007-08, and accounts the rent paid in its books as an expense, is FBT applicable on the same.... Is the employer liable for FBT on the same... Isn't it taxable in the hands of employee under salaries as perquisites....
Actually in a scrutiny, assessing officer is contending that the Company should have paid FBT on rent borne on behalf of the employee. Is he right in his contention....
29 June 2010
U/S 115WB (1) and 115WC :- FBT stands for any consideration for employment provided by employer by various ways. here one of the point is :- any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees) will be treated as FBT.
CAclubindia
