08 September 2008
I AM NEWLY JOINED THIS ORGANISATION WHICH IS ENGAGED IN MARKETING ACTIVITIES, AGENT FOR INTERNATIONAL SCIENTIFIC RESEARCH INSTRUMENTS, AND HAS MARKETING AND SERVICE STAFF OF AROUND 10 PEOPLE, WHO WILL BE TRAVELLING MOST OF THE TIME ALL OVER INDIA, AND ALSO FOR TRAINING BOTH IMPARTING AND GETTING FROM PRINCIPALS AND TO CUSTOMERS, ALL OUR CUSTOMERS ARE ONLY DOMESTIC, AND PRINCIPALS INTERNATIONAL. WE HAVE EXPENSES LIKE TRAVEL-DOMESTIC, INTERNATIONAL, LODGING, CONVEYANCE, FOOD EXPENSES ETC., REIMBURSEMENT. SINCE WE GET REIMBURSEMENT BILLS FROM OUR STAFF IN TOUR EXPENSES FORMAT. I WANT HOW THESE EXPENSES ARE TREATED IN TERMS OF CALCULATION OF FBT. WHETHER ANY FBT APPLIES FOR THESE EXPENSES, IF SO, HOW WE HAVE TO CALCULATE FOLLOWING RULES AND REGULATIONS OF FBT, PLEASE GUIDE ME,
08 September 2008
Please refer section 115 W to 115WL of IT Act ,prima facie FBT is applicable here.In case of doubt in specific reimbursement,please revert back
08 September 2008
All the expenses you mentioned above are covered in FBT. Except Travelling (Domestic or International), all other expenses are taxable @30% plus sur. plus ed.cess on the value of 20% of expenses. In case of travelling, the value to be taken at 5% of expenses. For further details, please refine your queries to a specific extent.
CAclubindia
