Fringe Benefit Tax

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ashutosh

ashutosh (Querist)
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31 July 2007 Hello,

I want to know that whether out of pocket expenses of auditors are liable for FBT

Monark

Monark (Expert)
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31 July 2007 NO FBT will be applicable due to lack of employer - employee relationship.

CA Mani

CA Mani (Expert)
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02 August 2007 Hi Ashutosh,

You have to tell whether It's in the hands of client or auditor?

Then correct answer will come.

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CA Nikita

CA Nikita (Expert)
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05 August 2007 Hello!!

If the company pays such expenditue the co will be liable to FBT... but if these are in nature of reimbursement to auditors n form part of professional fees... then they are not liable to FBT...

CA Mani

CA Mani (Expert)
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06 August 2007 In client's hand, It's not taxable.

But,

If the audit firm is Partner ship firm(Not Proprietorship), Auditor have to pay FBT as per the clauses applicable.

CA Nikita

CA Nikita (Expert)
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08 August 2007 hello!!

I guess the query has being well answered by the experts..