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fbt telephone exp

shalabh jain (student) (34 Points)

24 August 2007

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 ???

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18 Replies

Nitesh (Chartered Accountant) (340 Points)
Replied 24 August 2007

yes still it would be cover under fbt

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(Guest)

how can it be covered under fbt wouldint it be covered under expenses as it is installed in business primises and used for the same purpose

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.

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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

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(Guest)

pls. give me full descriptions in FBT on telephone Exp. (landline and as well as mobiles)

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.

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