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FBT applicable or not

Others 1311 views 8 replies

I am working in MNC [existing in India] company and parental company existing in Europe
Issue : Parental company chairman/director/employees are travelling to India, and Indian company is incurring all expenses
and accounting under ledger name travel/food/hotel charges etc.
Problem is for above charges liable for FBT or not,???
else, to avoid FBT expenses to book in which ledger name ???
Required solution immediately as we have to close our books as on 31-12-2008.
Regards,
Nagesh M R
 

Replies (8)

The company is  liable for FBT on the said travel expenses incurred.

Better to pay FBT instead of attracting I.T. Deptt. attention.

FBT should be paid as payment is considard to be made to employees.

Company is liable to Pay FBT on the above expenes under the head travelling expenses.

Fringe Benifit woulb be 5%

why 5%? no details are mentioned in regard of business of the assessee.

FBT WILL NOT BE CHARGED

Tours and travel expenditure recorded in the books of your company shall attract 5% FBT since the expenditure is incurred by your company.

The company has to pay FBT on these expenses and there is no question of these expenses being booked under other heads under different names to avoid FBT. Adoption of such methodology would amount to improper and illegal action on the part of the company.


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