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FBT applicable or not

Nagesh M R (Service) (113 Points)

16 January 2009

I am working in MNC [existing in India] company and parental company existing in Europe
Issue : Parental company chairman/director/employees are travelling to India, and Indian company is incurring all expenses
and accounting under ledger name travel/food/hotel charges etc.
Problem is for above charges liable for FBT or not,???
else, to avoid FBT expenses to book in which ledger name ???
Required solution immediately as we have to close our books as on 31-12-2008.
Regards,
Nagesh M R

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8 Replies

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 16 January 2009

The company is liable for FBT on the said travel expenses incurred.

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Atul Kumar (CA) (504 Points)
Replied 16 January 2009

Better to pay FBT instead of attracting I.T. Deptt. attention.

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 16 January 2009

FBT should be paid as payment is considard to be made to employees.

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 17 January 2009

Company is liable to Pay FBT on the above expenes under the head travelling expenses.

Fringe Benifit woulb be 5%

Sourav Modi (Learner!) (306 Points)
Replied 22 January 2009

why 5%? no details are mentioned in regard of business of the assessee.

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nihar das (service) (22 Points)
Replied 26 January 2009

FBT WILL NOT BE CHARGED

Madhavendra (CA Final Student) (99 Points)
Replied 22 February 2009

Tours and travel expenditure recorded in the books of your company shall attract 5% FBT since the expenditure is incurred by your company.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 26 February 2009

The company has to pay FBT on these expenses and there is no question of these expenses being booked under other heads under different names to avoid FBT. Adoption of such methodology would amount to improper and illegal action on the part of the company.