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FBT on Internet Charges

siva (employee) (36 Points)

06 February 2008

Can FBT will be payble on Internet Charges paid by the company on connections installed in the office ,under the head Telephone Expenses?

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14 Replies

(Guest)

Hi siva... FBT will not come for internet charges because internet means that is leased line connection, which is specifically excluded from FBT provisions. thanks

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Amit Sharma (article) (2677 Points)
Replied 07 February 2008

It falls under leased lines, hence not falling under the clause of FBT hence exclude.....

M.Sriram Shenoy (CA Final) (814 Points)
Replied 07 February 2008

Internet Charges doesnot fall within the ambit of FBT.

(Guest)

Yes, it is covered under FBT since the same can used both for telephone and for the purposes of internet. Covered under "Use of Telephone" head of FBT.

HARISH KUMAR SADANA (SERVICE) (83 Points)
Replied 07 February 2008

FBT WILL NOT BE PAYABLE ON INTERNET CHARGES. send me ur email address, i will send u a scanned copy of Section 115WB(2)(J). MY email is dinesh757 @ rediffmail.com

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O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 07 February 2008

Yes.FBT is payable on all Tel/Fax/Internet charges. This is not leased line.

(Guest)

I suppose its Yes . but after seeing the ans posted it hasconfused me .Their is no uniformity in the ans. I request to look in to the matter so as to get a confirm n uniform ans

(Guest)

FBT is not levied on internet charges

balkrushna rangrao kulkarni (Internal Auditor) (29 Points)
Replied 22 May 2008

Pl. send us details regarding use of internet and it's applicability under FBT Sec 115 w b (2)(j)

sandeep (j) (26 Points)
Replied 01 August 2008

Hi,

FBT is payable on internet and FAX if they are used for calling

if internet is used only for surfing then fbt is not payable

but if client uses it for calling and surfing both, then either they maintain record of usage otherwise will pay fbt on whole expense

I think you guys are cleare now

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Pawan Kumar Garg (Chartered Accountant) (0 Points)
Replied 18 September 2008

Fbt will be payable on internet charges.

sobhanadri (profession) (24 Points)
Replied 25 September 2008

Originally posted by :O.D.SHARMA
"	Yes.FBT is payable on all Tel/Fax/Internet charges. This is not leased line.	"

Taxguy (Consultant) (3383 Points)
Replied 01 October 2008

True, FBT is to be paid.

CA Ravish Trivedi (The Possibilities are Infinite...) (772 Points)
Replied 06 October 2008

FBT is not payable only in case of LEASED TELEPHONE line iapart from that any other communication expenses called by diff name is liable to FBT as per sec 115WB(j) and circular 8/2005.