banner_ad

Is director considered as employee for FBT ?

This query is : Resolved 
Profile Image

Profile Image

(Querist)
20 November 2007 The company is having only directors. there are no employees.Will the expenses incurred by director considered for FBT ?
Mention with provision,circular.....
Profile Image

R.V.RAO

Profile Image

R.V.RAO (Expert)
20 November 2007 CIRCULAR NO 8/2005 DT 29 TH AUG. 05 OF THE IT DEPT. HOLDS THAT EMPLOYER-EMPLOYEE RELATIONSHIP IS A PREREQUISITE FOR LEVY OF FBT.
EVEN THE CHARGING SECTION 115WA SAYS THE SAME.
IF THERE ARE NO EMPLOYEES, THERE IS NO FBT.
DIRECTOR IS NOT AN EMPLOYEE AS HE DOES NOT HOLD AN EMPLOYMENT CONTRACT OR APPOINTMENT LETTER.(REFER TAXMAN'S GUIDE TO FBT 2005 -PARA 2.10-1).
SO NO FBT IN THE CASE STATED ABOVE BY YOU.
R.V.RAO
Profile Image

KAAPIL

Profile Image

KAAPIL (Expert)
20 November 2007 NO FBT as there are no employees.
Profile Image

Chinmay

Profile Image

Chinmay (Expert)
04 December 2007 there is no employee employer relationship. therefore no FBT.
Profile Image

CA Anil Jain

Profile Image

CA Anil Jain (Expert)
18 January 2008 then why TDS is deductible on director's salary when there is no employee-employer Relationship????????
Profile Image

Jitender

Profile Image

Jitender (Expert)
10 August 2008 if director is employed by the co for e.g as executive director, wtd, then they are employees. & liable to tds & fbt.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details