FBT on reimbursement

This query is : Resolved

HEMANT (Querist)
Follow

12 March 2008 Dear Sir,
We are a research firm, where our staffs members are suppose to travel and incur lot of other out of pocket expense like Telephone/conveyance etc. on behalf of the client. We get the reimbursement of these entire amounts from the clients on actual basis.

We as Company are under obligations to pay FBT on all these expenses; can we charge this too from our clients along with the basic amount? Is this legal? Like in case of sweat equity or ESOP section 115WCA allows employer to recover the actual FBT amount.

CA J M Pattanayak

CA J M Pattanayak (Expert)
Follow

12 March 2008 Legally you cant claim the FBT from your client. But with mutual understanding you can claim it from your client.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
Follow

12 March 2008 LEGALLY YOU CANNOT CLAIM

HEMANT

HEMANT (Querist)
Follow

12 March 2008 Even if our agreement says that client will reimburse the actual cost including the incidence of FBT. Pl. Revert

HEMANT

HEMANT (Querist)
Follow

14 March 2008 eeeeeee

CA.Aman Dugar

CA.Aman Dugar (Expert)
Follow

17 March 2008 You r liable to FBT on such expenses.You can claim it from your client but just do it by suitably adjusting your fees.Dont show it as a separate item in the bill you raise.
However in case of professionals such expenses are not liable to FBT.

HEMANT

HEMANT (Querist)
Follow

18 March 2008 Thanks

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sameer

Aishwarya N

Sidhartha sankar pillai

Shubham Jain

ANJANA PALIYATH

Subscribe Now

FBT on reimbursement

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA