If the firm has incurred only the rental charges and no additional benefits were derived from that, whether the firm is liable to pay FBT or not? (For example suppose in the firm they have BSNL telephone line and the scheme which they have is 200 rental and 175 calls free . then additional rates are applicable as their plan . In the period no outgoing call was made and the bill shows an outstanding of Rs. 200/- only whether the firm is liable to pay tax or not in the above case....)?
yes, the firm is required to pay fbt. becz the very nature of exp is still of telephone.
SINCE IT IS COVERED BY FBT HENCE THE TAX IS REQUIRED TO BE PAID.
THERE MAY BE ONE SITUATION IN WHICH THE FIRM CAN SAVE FBT IS THAT IT HAS NO EMPLOYEE.
Yes the firm is liable to pay FBT
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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