Sorabh Gupta (Manager ( Taxation )) (877 Points)
06 June 2009Dear All
What is provision of FBT regarding Guest House expenses & telephone expenses ( Mobile & Fixed Expenses ).
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 06 June 2009
Finance Act, 2008 made some significant amendments to the provisions relating to the levy of FBT. With a view to rationalizing the provisions of FBT, Section 115WB (2) was amended. Now, Expenditure on guest house will not be considered for FBT.
But the telephone exp. are still in the purview of FBT
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 06 June 2009
What about telephone expenses i.e. regarding Telephone ( Mobile & Fixed )
About Fixed Line...............
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 06 June 2009
The mobile phone expenses and other telephone expenses will be subject to the FBT. It will be of no avail to state that these are only official expenses. Even in such a case the FBT will be payable by the employer.
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 08 June 2009
but as per section 115WB (2)(J) The use of telephone (including mobile phone) other than expenditure on leased telephone lines is liable for FBT.
Therefore it is clear that there is no FBT on leased line telephone
MAHENDRA KUMAR BAGRECHA
(FCA)
(1402 Points)
Replied 08 June 2009
Yes, I agree with the view of Mr.Dashrath Maheshwari
CAclubindia
