The nature of the business of my company is providing astrology and remedy services. it is registered under the companies Act. We are arranding one program named as "Muruga Trip Expenses", for this we have incurred many expenses which includes travelling expenses. further we setoff this expenses against the income which received for this expenses and this expenses is not shown under the profit and loss account.
my question is whether the travelling expensesn incurred for this trip expenses is liable for Fringe Benefitr Tax (FBT).
02 February 2009
As I understand from Query, Travelling Expenses are claimed as Expenditure. Instead of disclosing it as an item of expenditure on debit side of P & L Account, the assessee is deducting the same from Income and disclosing only net amount of income on credit side of P & A account
I am afraid mere change in disclosure practice would not absove the asessee from liability to FBT or any other statutory matter for that purpose. If this is possible, every body would perhaps do the same to avoid payment
CAclubindia
