HOTEL & BOARDING EXP ON TOUR IS TAKEN IN TRAVELLING EXP FOR FBT OR NOT

As per section 115WB use of boarding and lodging is included in FBT and valued similarly. Thanks, taxsolution @ againstthelaw.co.in

hi dear only ticket and taxi expenses will go to the travelling expenses and taxed at 5% as tours and travels. cost of hotel and foodind will go to the hotel,lodging and boarding @ 20%. but practaically there is no clear defination in incometax for diffrenciate such amount, so u can take it as tour expenses @ 5 %. in case of doubt the benifit will go to the assesee. i think u have understan clearly

I agree with Ashish. However, the matter need some authentic clarification. Normally, entire expenses incurred in a tour is debited to tour &/ travelling expenses A/c. If separate headwise FBT is applicable on expenses incurred in tour, we should advise our clients and accountants to make the entries accordingly. The question is, whether this was the intention behind the Act?

Value of Fringe Benefits depends upon the kind of business the employer is carrying on.

According to sec 115WB(2)(G) use of hotel, boarding and lodging facilities is included in fringe benefits. And for value of those benefits you must see that what kind of business employer is carrying on and should refer to sec115WC(2).

In general it is 20% of the expenses (if employer is not carrying on the specified businesses) for hotel boarding and lodging facilities,
And it is 5% for tour and travel cost(i.e. the tickets)

Thanks,
taxsolution @ againstthelaw.co.in

Yes, if expenses made by company to employees