FBT on telephone

This query is : Resolved

Ravi Jagetiya(CA Final) (Querist)
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25 March 2008 Sir since the FBT is liable only if employee is being benifited from the expenditure incured by employer.
In many cases it's very difficult to find out the exact proportion of his personal use ,say my company is paying my cell bill normally 1100/month. but it is being used by me for company business purpose as well as for my own purpose.

help me plz.

Thanks in advance.

Jitender

Jitender (Expert)
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25 March 2008 no ,u are wrong. because some benefits are deemed to be fringe benefits such as telephone, conveyance, travelling. the bi-furcation is not required as whole amount is liable to fbt.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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26 March 2008 IT IS VERY DIFFICULT TO BIFURCATE SUCH EXPENDITURE FOR PERSONAL AND OFFICIAL USAGE ,THEREFORE ALL SUCH TYPE OF EXPENDITUTE WHO HAVE DUAL USAGE ARE COVERED UNDER FBT

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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26 March 2008 tahnks

R.V.RAO

R.V.RAO (Expert)
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26 March 2008 FBT IS LIABLE TO BE A TAX ON EMPLOYER FOR ALL DIRECT OR INDIRECT FRINGE BENEFITS PROVIDED TO THE EMLOYEE.
THERE IS NO NEED TO BIFURCATE THE PERSONAL OR OFFICIAL EXP .
TOTAL AMOUNT UNDER THE RESPECTIVE HEADS LIKE CONVEYANCE, TELEPHONE ETC..IS LIABLE FOR FBT .
R.V.RAO