FBT liability

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This query is : Resolved

varun gupta (Querist)

14 May 2008 If a company reimburses some amount to employees every month as per policy, an employee claims reimbursement for March in the month of April, liability for fbt over the amount will arise in IVth qtr or in Ist Qtr? When will these expenses be booked?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

14 May 2008 It depends upon when you recognise the liability for the expenditure.

varun gupta

varun gupta (Querist)

14 May 2008 Can u plz explain for both cases i.e what if exp is recognized in March itself and what if it is booked in April as expense?

varun gupta

varun gupta (Querist)

14 May 2008 Can u plz explain for both cases i.e what if exp is recognized in March itself and what if it is booked in April as expense?

varun gupta

varun gupta (Querist)

14 May 2008 Can u plz explain for both cases i.e what if exp is recognized in March itself and what if it is booked in April as expense?

RICKY

RICKY (Expert)

14 May 2008 Hi... if the expenses has booked monthly then definnitely for the month of March also you should book the expenses as provision (Consistency in accounting policies as per AS-1) in the financial statements.

Then in that case Your FBT amount will get increased to that extent.

Ravikumar.G

Ravikumar.G (Expert)

17 November 2008 Reimbursement of Expenses :
a) Reimbursement of expenditure to employees is covered u/s 115WB(2) – Liable for FBT
b) Reimbursement of expenditure to persons other than employees is – Not liable for FBT.
c) Expenditure incurred by the company and subsequently reimbursed by client – Liable for FBT
d) Expenses incurred by professionals and reimbursed by the client (company) – Not liable for FBT.

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