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FBT

Adv. S Sharma (Lawyer) (574 Points)

15 March 2008

FBT is applicable on Mobile and telephne which are used for Business.

Is FBT applicable on Mobile or Landline phones which are used for persnel purpose ???

Mobile or Landline gven to Employee by Employer.

Regards,

Sachin

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7 Replies

Siva Kumar (Student) (963 Points)
Replied 15 March 2008

All benefit cover FBT

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Gupta B Gullapudi (PRACTICING CA) (42 Points)
Replied 15 March 2008

if fixed telephone allowance is provided to employees, no FBT would be payable thereon because the same will be taxable in the hands of employees as profits in liew of salary under section 17 (3)

Further, it is not provided in section 115 WB that use of telephone only by employees would be covered. Therefore, fringe benefit tax will be attracted even in a case where there is no use of telephone by the employees and it is used hundred per cent for official purpose.

Gupta B Gullapudi (PRACTICING CA) (42 Points)
Replied 15 March 2008

if fixed telephone allowance is provided to employees, no FBT would be payable thereon because the same will be taxable in the hands of employees as profits in liew of salary under section 17 (3)

M.Sriram Shenoy (CA Final) (814 Points)
Replied 17 March 2008

Telephone Charges are covered by "Deemed Fringe Benefits".

This is because, where any benefit is provided by the employer to his employees and such amount, cannot with certainity, be segregated between personal and official element will be covered as "Deemed Fringe Benefits".

And so, any amount which you show under the head "Telephone Charges" in your Financial Statements will be liable to FBT, unless such amount doesnot contain any sum given as fixed telephone allowance to the employee, which forms part of his salary component.