26 May 2008
ABC is a private limited company engaged in pharmacy distribution. During the year the company has paid 100000/- for private journey of MD and his family.In this case I would like to know will it be considered as private expenses of MD or company can claim as business expenditure and pay FBT. If FBT then what would be FBT percentage.
26 May 2008
It will be considered as private expenses only, It can not be considered as business expenditure. Please understand that FBT is not a substitute for Incometax.
26 May 2008
IF MD IS ENTITLED TO ANNUAL/ONCE IN TWO YEAR LTA ,THEN IT IS BUSINEES EXP.AND FBT @5% BEING PFARMA. IF MD HAS NO LTA ENTITLEMENT , THEN IT IS PRIVATE TRIP AND MD 'S PERSONAL ACCOUNT MAY BE DEBITED.NO FBT R.V.RAO
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