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FBT on Tour &Travelling by auditors

This query is : Resolved 

13 February 2009 Is FBT will be paid on tour and travelling expenses incurred by the auditors or can save FBT by showing it in out of pocket expenses of auditors??
Any tax liability will occure in the hands of the Auditors on account of this reimbursement?

Regards:

Prafull Kumar
CA Final

13 February 2009 No FBT will be paid for the reimbursement of exp. incurred by the external auditors.

Service tax is to be paid on the amount of exp. reimbursed by the company, since it will be included in the value of service provided.

14 February 2009 FBT is not payable. Please check the following link:

https://www.thehindubusinessline.com/iw/2005/07/17/stories/2005071701061300.htm


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