FBT on Tour and Travel
14 July 2007
Upto FY 2005-06 FBT was levied at 20% on total travelling expenses. However, from FY 2006-07 travel exp. has been broken into 3 parts. 1) Conveyance @ 20%, 2) Hotel, boarding & lodging @ 20%. 3) Tour & Travel @ 5%. My question is, what expense should be covered by tour and travel. Should it cover only fare or can it also be stretched to cover hotel, boarding and lodging exp. also.
16 July 2007
Tour and travel should purely consists of fare since boarding n lodging are covered by a different clause G... Hope this clears your query...