FBT on Internet Charges

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Abhishek (Querist)
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12 October 2007 m a little confused regarding the levy of FBT on Internet Charges....can we relate it to telephone expenses??....wat if we get our telephone bills which includes the internet expenses???

Ravikumar.G

Ravikumar.G (Expert)
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12 October 2007 Except Leased Lines all other Telephone and Internet Expenses will come under FBT Net.

Whether expenditure for use of telephone includes (i) expenditure for use of telephone installed in the office and (ii) payment of telephone (including mobile phone) bills in the name of the company directly made by the company?

In terms of the provisions of clause (J) of sub-section (2) of section 115WB, expenditure incurred or payment made for the purposes of use of telephone (including mobile phone) other than expenditure on leased telephone lines is liable to FBT. Therefore, expenditure on use of telephones (including mobile phones) installed in the office is liable to FBT. This is so, irrespective of whether the telephone is in the name of the company or not and also whether payment for its use is made directly or indirectly by the company.

Abhishek

Abhishek (Querist)
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12 October 2007 but the words "internet expenses" are mentioned nowhere...how come u conclude that???

CMA Gul S

CMA Gul S (Expert)
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12 October 2007 I Think the internet Expenses related to the Exclusive Internet Service Providers means Hathway, Sify and all the would be charged and not the Telephone lines

CMA Gul S

CMA Gul S (Expert)
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12 October 2007 some more suggestions needed

Abhishek

Abhishek (Querist)
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12 October 2007 Mr Gul I didn't get u...

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