11 November 2008
credit card exp reimbursed by employer(shopping exclusively 4 private purpose) will cover under FBT or that will be monetary obligation of employee discharge by employer? i want to know exactly how we diff. that exp. will cover under fbt or not (consider only those exp which r covered club facility, credit card etc)
11 November 2008
All re-imbursement charged as income in employee's hand is not liable to FBT. Also expenses incurred by employer on behalf of employee is exempt in hands of employee is not liable to FBT. It is because 1st it chargeable in hands of employee & then exempt. There is difference between "NOT CHARGEABLE" & "EXEMPT" Credit Card exp re-imbursement is chargeable in hands of employee. Hence no FBT on it
CAclubindia
