FBT on exp of Director

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This query is : Resolved

Mahender Jain (Querist)

05 May 2009 Company is paying travelling, Hotel etc exp of two director ( One is Managing director and other is just director, he not doing anywork in company )

Whether exp of both director are allowable for fbt or not

and if it not allowable for fbt, whether these exp are include in their Remuneration amount or not.

plz give full detail on exp of director for FBT purpose

jasmine

jasmine (Expert)

05 May 2009 If hotel bills are in the name of
employer there is F.B.T.
Also, it will be applicabe for both the directors if the expenses incurred were for official purposes.

jasmine

jasmine (Expert)

05 May 2009 It is very subjective to decide whether the director has worked or not. As per the provisions of FBT, the expenses incurred should be for official purposes. If they can adjudged as spent for other than official purposes, then not liable for FBT. Hope this clarifies your doubt.

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