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Reimbursement to Director

virendra (MBA) (55 Points)

15 October 2007

Hi All,

Is reimbursement to Director/Employee/MD exempted from FBT if the bill is in his own name and not the company also in case where he is travelling for business purposes.

Thanks

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5 Replies

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 15 October 2007

No Only Remuneration is exempt

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Rachana Gadage (Account Executive) (136 Points)
Replied 16 October 2007

Hi Virendra, Take e.g. of tel exp reimbursement. Evene bill is coming in the name of employee and he is taking reimbursement from employer then also it is attractin FBT.

virendra (MBA) (55 Points)
Replied 18 October 2007

What if the trip is not a business trip or how come one determine whether its a business trip or not. Is it dependable on how the company treat it. If I go on a business trip use a hotel and take the bill in my own name this will be reimbursable to me, but will it attaract FBT.Similarly reimbursement of private journey won't be subjected to FBT.