Ad-Free CAclubindia and daily updates on your mobile. Subscribe Now!

FBT - TRAVELLING EXPENSES

15 May 2007

WHETHER THE EXPENSES INCURRED ON TRAVELLING INCLUDES HOTEL EXPENSES INCURRED FOR THE PURPOSES OF FBT AS BOTH EXPENSES ARE COVERED UNDER DIFFERENT HEADS

Reply
Follow
Share

5 Replies

Chitra Chandrasekharan (82 Points)
Replied 17 May 2007

Since use of hotel, boarding and lodging facilities are included specifically under clause (G) of sub section (2) of section 115WB , hotel expenses incurred in the course of travel have to be excluded from travel (which falls under clause Q of sub section (2) of section 115WB) and the value of for the purpose of Fringe Benefit is to be computed seperately

Upgrade to CAclubindia Pro. Subscribe Now!

bharani (ca) (46 Points)
Replied 04 June 2007

yes, what ever chitra chandrashekar said is right, but i have onemore issue, whether the visa processing charges spend for the employees how to consider

Amit (ca student) (112 Points)
Replied 05 June 2007

No, not to exclude hotel expenses since it is incurred during the travelling.

Vk Duggal (320 Points)
Replied 05 June 2007

visa charges are part of the travelling expenses and hence will be liable for FBT. With regard to hotel expenses while on travelling, position is debateable as in accounts the hotel expenses so incurred are part and parcel of the travelling expenses. If you can recall, when earlier travelling expenses used to partially disallowed, hotel expenses were part and parcel of travelling expenses.

bharani (ca) (46 Points)
Replied 08 June 2007

as per my openion, as hotel,lodging and boarding exps are separetly metioned, you should include all the hotel, boarding and lodging irrespective while on travel or not, should be included under that head