22 February 2009
Our company reimburses to employees for fuel, telephon, vehicle running & maint.(including drivers salary) on the basis of supportings vouchers, which is actually a part of salary.
My different questions are : 1. Can we book the amounts as "Fuel Reimbursement", "Telephone Reimb", "Veh. R/M Reimb" or we should book directly under "Fuel expenses, Telephone Expenses, Vehicle R/M expenses". 2. Since all these reimbursements are paid to individual employees as per grade entitlements fixed, if we opt for paying FBT on these, will there be any problem in justifying that why we are not taxing it to individual employees and paying fbt on that.
3. In case of vehicle, our company also incurrs expenditure on pick/drop of employees by hiring out cabs/buses. Company also incurrs expenditure for other offical travelling (hiring of cars and expenses on owned cars) expenses done for employees, customers, etc.
Whether these expenses will also be covered under FBT along with depreciation on owned cars + expenses in point no. 1.
22 February 2009
If you show it as re-imbursements made to employees and debiting to your p&l account then automatically FBT will be attracted.
If you are paying it as part of salary and debtiting to their salary account, then it should be treated as part of their salary.
Depreciation and any interest paid for acquiring that vehile and expenses like maintaince, petrol, driver salary, and vehilce insurance has to be considered for fbt.
22 February 2009
My point is, we are ready to pay fbt on these rather than taxing it to individual employees, but showing them as reimbursements in books of accounts should not be a problem while auditing/assessment ??
Its actually a part of salary package and payable in the form of reimbursements.
CAclubindia
