FBT

This query is : Resolved

Harini (Querist)
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21 April 2009 Pl help ASAP. We are contemplating to provide as part of managerial remuneration to Director, medical reimbursement of Rs.15000 p.a. and reimbursement of actual telephone bills (residential and mobile). Do they attract FBT? Also if we change the mobile connection to the company name (since it is being used for company purpose only) can we avoid FBT. Pl advise.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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21 April 2009 A managing director is an employee of the company, but not to the extent so as to be entitled to preferential payments.

MD remuneration would not attract FBT as it is txable under directors hands under the head Salary.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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21 April 2009 Telephone provided to the director will attract FBT and medical re immbursement also Attract FBT.

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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21 April 2009 agree with experts

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)
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21 April 2009 both payment/expenses attract FBT. there is no differance for connect. in company name and used for official purpose.med. reimb. upto 15000/- attract FBT in hand of company and above it taxable in the hands of employee.