Fringe benefit tax

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CA CS Kumarpal Jain (Querist)
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20 September 2007 Is FBT applicable on expenses incurred by the directors of the company?
Will your answer differ on whether the director is executive or non executive or whether he is paid salary or proffessional fees?

R.V.RAO

R.V.RAO (Expert)
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21 September 2007 UNDER SEC 115WB(2),FRINGE BENEFITS ARE DEEMED TO BE PROVIDED BY THE EMPLOYER WHEN SUCH EXP.ARE INCURRED .NO SEGREGATION AS TO EXPENSES ON EMPLOYEES AND EXPENSES ON OTHERS IS PERMISSIBLE. ( CIRCULAR NO 8/2005 DT 29 TH AUGUST 2005 ).
AS SUCH IT MAKES NO DIFFERENCE AS TO EXECUTIVE OR NON- EXECUTIVE DIRECTORS WHO ARE PAID SALARY OR FEES.
ANY EXP. UNDER ANY PURPOSES STATED IN CLAUSES (A) TO (P) OF SECTION 115WB(2) ARE DEEMED TO HAVE BEEN PROVIDED AND ARE TAXABLE.
C.A.R.V.RAO