Shikha Sharma (Chartered Accountant) (311 Points)
29 June 2010Hi friends,
If the company provides accommodation to its employee in the financial year 2007-08, and accounts the rent paid in its books as an expense, is FBT applicable on the same.... Is the employer liable for FBT on the same... Isn't it taxable in the hands of employee under salaries as perquisites....
Actually in a scrutiny, assessing officer is contending that the Company should have paid FBT on rent borne on behalf of the employee. Is he right in his contention....
Thanks in advance.
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 29 June 2010
dear shikha
rfa is defined specifically by the income tax law.there is no applicability of fbt since the same is always taxable in the hands of employee. if the AO is looking for obligation point of view then obligation is also taxable in the hands of employee in this case whether employer is liable to fbt or not.
regards
tarun rustagi
CAclubindia
