06 July 2008
Is Fringe Benefit Tax Applicable on Travelling expenditure incurred for the purchase of machinery? I read somewhere on the net, may be on caclubindia.com, it is not applicable on it, but unable to locate it again. Plz facilitate & if not applicable, how can i prove my point? my e-mail id: varunk.gupta@yahoo.com
06 July 2008
There is no exemption to Travelling expense . If the travel is done for purchase of machinery then make sure it is booked under head "Travel", Dont book it under "conveyance". % of Conveyance taxed is 20%, Where as for travel it is only 5%.Moreover dont capitalise FBT paid on travel along with machinery.
CAclubindia
