Plz do reply,
If a auditor incurred expenses for tour,travels for assigning audit work and then after whole expenses are reimbursed by the client ,then who is liable for FBT?
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FBT
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no its no liable for FBT, ref circular of fbt question no.13 which clearly states that FBT is not liable in the hands of the client.
AUDITOR IS LIABLE FOR FBT.
SINCE THE EXPENDITURE ON TRAVELLING, HOTEL ETC IS INCURRED BY THE COMPANY (IN THIS CASE AUDITOR) AND NOT BY THE CLIENT , THE COMPANY IS LIABLE TO FBT IN RESPECT OF SUCH EXPENDITURE. HOWEVER THE CLIENT WILL NOT BE LIABLE TO FBT IN RESPECT OF PAYMENT FOR SUCH EXPENDITURE.
dear kamlesh,
first of all the auditors are mainly properitory and partnership firms in india not pvt. ltd company ,so there is no question of fbt.
and client rembuirshed the bill so it will be not fbt in hands of client
there is no chargeability of FBT in case of reimbursement of expenditures. it is chageable on whom , who incurrs actually.if ca firm is proprietorship then there is no question of FBT and in case of parnership it is applicable
FBT is very well attracted. FBT will be charged on expenses incurred by the assessee which fall under the ambit of FBT, even if such expenses are reimbursed to the him. FBT is ATTRACTED.
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