We have shown all expenses ie air ticket, hotel, lunch, dinner, outstation conveyance etc. under the head Tour & travelling and paid FBT @5% on all Expenses. I would like to know:-
1. Is it correct ? 2. whcih type of boarding & loading expenses taxable in FBT. What is the % of Taxable of Boarding & lodging exp.
31 December 2007
HOTEL ,BOARDING AND LODGING UNDER SEC 115WB(2)(G)INCURRED FOR EMPLOYYES OR OTHERS INCLUDING REIMBURSEMENTS TO EMPLOYEES OR DIRECTORS ATTRACT FBT @ 20% FOR HOTEL-INDUSTRY 20% FOR CONSTRUCTION-INDUSTRY 5% FOR PHARMA-INDUSTRY 5% FOR SOFTWARE-INDUSTRY 20% OTHERS FBT IS NOT ATTRACTED ON FIXED HOTEL ALLOWANCES TO DIRECTORS OR EMPLOYEES.
CONVEYANCE , TOUR AND TRAVEL UNDER SEC 115WB(2)(F)/(O)INCLUDES REIMBURSEMENT OF CAR EXP. (INCL. DRIVER SALARY) TO EMP.ON DECLARATION AND OR ON BASIS OF BILLS SUBMITTED BY EMP. IT ALSO INCLUDES TRAVEL, TOUR OR CONV. EXP. INCURRED ON A CLIENT PROJECT AND LATER REIMBURSED BY CLIENT. EVEN PERDIEM ALLOWANCES FOR MEETING LODGE AND BOARDING GIVEN TO EPMPLOYEES ALSO ATTRACT FBT. BUT FBT IS NOT ATTRACTED ON SUCH REIMBURSEMENTS TO A CONSULTANT AND FIXED CONV. ALLOW. TO EMPLOYEES OR EXP. FOR PROVIDING LTC TO EMPL. RATES OF FBT IN THIS SUB SECTION ARE SAME AS ABOVE EXCEPT FOR CONSTRUCTION INDUSTRY THE RATE IS @5%. YOUR BOOKING THE EXP. UNDER THE HEAD TOUR AND TRAVEL IS OK. BUT FBT RATES SHALL BE AS PER INDUSTRY RATES GIVEN ABOVE DEPENDING ON YOUR INUSTRY. R.V.RAO
I would like to know that hotel, lunch dinner & outstation expenses incurred during the travelling, the all above expenses for FBT cover under the Head tour & Travelling under section 115WB(2)(F) OR Boarding & loading under section 115WB(2((G)
CAclubindia
