FBT query

This query is : Resolved

CA Vibhor Gupta (Querist)
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01 March 2009 a Private limited Company is not having any employee. Directors of the company are not withdrawing any salary.
Is it liable for FBT ? Pls guide

Ram Avtar Singh

Ram Avtar Singh (Expert)
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02 March 2009 Car interest, Vehicle running & maintenalce, Conveyance, Car Insurance, Telephone Exps. etc under FBT.

But
An entity, which does not have any employee on its rolls, will not be liable to FBT.

CA Vibhor Gupta

CA Vibhor Gupta (Querist)
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02 March 2009 sir, but for applicability of FBT employee must be there and in our case we donot have any employee

CA.MANOJ LAMBA

CA.MANOJ LAMBA (Expert)
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02 March 2009 IF THERE IS NO EMPOLYEE, THERE IS NO LIABLITY OF FBT.

CA Vibhor Gupta

CA Vibhor Gupta (Querist)
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02 March 2009 sir is director without salary comes under the category of employee or not.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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02 March 2009 FBT is not applicable if a person does not have any employee during the previous year.employer-employee relationship is pre-requisite for the levy of FBT.