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fbt on tour & trav. of ders.'wife and child.

abid (accountant) (169 Points)

12 November 2007

hi,

plz tell me when a directors go on tour for business purposes with his wife and children

for exam.from delhi to goa whether it will be allowed as a deduction and will attract F.B.T. under TOUR AND TRAVELLING EXPS.

Thanks & Regard

Abid Hussain

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3 Replies

ASHISH YADAV (Chartered Accountant) (119 Points)
Replied 12 November 2007

dear abid, here traveling expenses will go under free ticket provided by employer to directors and there faimly under sec115WB(1)(b) and will attract FBT @ 100% value,and there living and hotel expenses will go in hospitality.

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MAHENDRA IYER (SERVICE) (315 Points)
Replied 12 November 2007

FBT on travelling expenses u/s 115WB(1)(B) will not apply in case where the employer is not in the business of carriage of goods or passenger or to the agents of such employer. If the employer is not in the business of Carriage then FBT will apply u/s 115WB(1)(f). However expenses incurred by the employer on the wife and childrens of the director will be disallowed and hence FBT will not apply on such portion of disallowed expenses.

K R Ramesh (Service) (201 Points)
Replied 21 November 2007

Hi I have similary type of query, many of the software company does send their spouse along when the onsite trip are for longer period. In these cases the travel ticket expense are met by the employer. In which section of FBT does it fall & what is the rate?. Please advice.