24 May 2008
Suppose travelling expenditure is of Rs.10000.00 Which would be liable for F.B.T. But the questions is this entire expenditure is not travelling , this also incude the bill for staying in hotel i.e. its rent , food etc. Q. State wehter this entire expenditure would be taxed as travelling expense or bifurcation would be needed. Tihs is because there is another provision u/s 115WB(2) regarding use of hotel, boarding and loadging facility are also liable for F.B.T. Exception is provided only in conference expenditure i.e. as far as conference expenditure is concered bifurcation is not required but for travelling this exception is not provided. Please support your answer by giving reason.
According to me travelling expenditure does not include other expenditure incurred for the purpose of travelling unless there is specific exception provided in the F.B.T. provision like conference as I explained erlier.Another reason for this is that specific provision overrides the general provision in the Law like GIFT, Even though expenditure on gift is for the purpose of SALES PROMOTION but treared as Gift for the purpose of F.B.T. So I am raising this particular issue.
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