Fringe Benefit Tax

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This query is : Resolved

Saranya M.Krishnan (Querist)

25 September 2008 One of the client sends employees to the one of the group companies in Denmark for the work to be done on behalf of the group company. The Client takes up the expenses and later on gets reimbursement for the same from the group company. Is this expense & the reimbursement in the hands of the client is liable to FBT?

Clear my doubts. If there is any mistake please correct me.

Ravikumar.G

Ravikumar.G (Expert)

25 September 2008 Reimbursement of expenditure to employees is covered u/s 115WB(2) - Liable for FBT.
Foreign Company deputing personnel to India under a Technical Supervision contract and the payment made by Indian co, then Indian co is liable, not the Foreign Co.

Vineet

Vineet (Expert)

25 September 2008 yes saranya, company will be liable to FBT. as expats are also employees( for the time being) of the company so the indian co. needs to pay FBT on the expenses. even if they are reimburshed by foreign co.

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