20 November 2007
The company is having only directors. there are no employees.Will the expenses incurred by director considered for FBT ? Mention with provision,circular.....
20 November 2007
CIRCULAR NO 8/2005 DT 29 TH AUG. 05 OF THE IT DEPT. HOLDS THAT EMPLOYER-EMPLOYEE RELATIONSHIP IS A PREREQUISITE FOR LEVY OF FBT. EVEN THE CHARGING SECTION 115WA SAYS THE SAME. IF THERE ARE NO EMPLOYEES, THERE IS NO FBT. DIRECTOR IS NOT AN EMPLOYEE AS HE DOES NOT HOLD AN EMPLOYMENT CONTRACT OR APPOINTMENT LETTER.(REFER TAXMAN'S GUIDE TO FBT 2005 -PARA 2.10-1). SO NO FBT IN THE CASE STATED ABOVE BY YOU. R.V.RAO