a partnership firm is incurring tel exp in respect of t landline phones installed at t firm .......these phones r exclusively usd 4 t purpose of buss.....
so r these tel exp chargeable 2 fbt ???
18 Replies
Nitesh
(Chartered Accountant)
(340 Points)
Replied 24 August 2007
yes still it would be cover under fbt
siddh
(Article (Final Result waited))
(391 Points)
Replied 24 August 2007
yes it cover in the criterea of 20 % fbt
CA.Sachin Bajaj
(Chartered Accountant)
(138 Points)
Replied 24 August 2007
It will still be taxable as FBT as it is specificaly mentioned in sec115WA(1) that FBT is payable on FB provided or deemed to be provided. & telephone is covered u/s 115WB(2)(j)
madhusudan
(Professional)
(267 Points)
Replied 25 August 2007
There is no doubt regarding the application of FBT in this case.
CA.Sachin Bajaj
(Chartered Accountant)
(138 Points)
Replied 25 August 2007
My friend please do not create confusion,FBT is on those benefits which are either provided or deemed to be provided to the employees & telephone expenses are deemed to be provided as a benefit to the employees whether it is actualy provided or not.
Although it will be admisible as expenditure but FBT will have to be paid if there is even a single employee in the entity.
CA.Sachin Bajaj
(Chartered Accountant)
(138 Points)
Replied 25 August 2007
Further to add fbt will be paid on whole amount even if it is expended wholly & exclusively for business of the assessee.
krishan murari khandelwal
(private practice)
(38 Points)
Replied 26 August 2007
yes, it will be liable for fbt...
Sonia Uthuppu
(Chartered Accountant)
(34 Points)
Replied 27 August 2007
FBT is simply a tax on expenditure incurred by the employers!
brajesha
(16 Points)
Replied 29 August 2007
IS FBT APPLICABLE IN CASE OF A TRUST (NON CHARITABLE) WHEN IT HAS NO EMPLOYEE BUT INCURRING EXPENDITURE WHICH ARE LIABLE FOR FBT U/S 115WB OF I.T. ACT, 1961.
BRAJESH AGARWAL
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 17 September 2007
yes. every telephone whether its for office or factory is liable for FBT including mobile phones.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 17 September 2007
No. any person not having employees is not liable to FBT.
FBT not applicable only on Individual, HUF,ccompany u/s 25 etc.
CMA Gul S
(Program Manager)
(5910 Points)
Replied 17 September 2007
yes there would be FBT. It is difficult to ascertain the bifurcation between the calls for Personal and Business purpose.
Recent Topics
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
Related Threads
CAclubindia
