FBT issue

any expencess which are debited to Profit & loss A/C of travelling exp are liable to FBT

All expenses incurred wholly and exclusive for the purpse of the business of the Company can  be claimed as normal business expenses.

If you can put forth and convince that expenses incurred during forein travel for the business of the company ,expenses can be debited to P&L A/c.

FBT shall be applicable on the expenses.

Since you have mentioned that tour is not official.Expenses shall be disallowed .

If EXpenses are disallowed , in my poinion FBT should not be Applicable because the expenses are not allowed OR asif not debited to P&L a/c.

you told us that TOUR is not official,so the expenses booked in P&L a/c will be disallowed.So,there is no question of FBT.

Another way is that you can booked your exp. in P&L a/c under the group salary and wages and deduct TDS u/s 194B thereon and Include this in Form 16 as other reimbursement.

I just ask Mr Purohit that it is Ok or any other implication.

you told us that TOUR is not official,so the expenses booked in P&L a/c will be disallowed.So,there is no question of FBT.

Another way is that you can booked your exp. in P&L a/c under the group salary and wages and deduct TDS u/s 194B thereon and Include this in Form 16 as other reimbursement.

I just ask Mr Purohit that it is Ok or any other implication.

Sir,

Thank you for your reply....

Since this is personal expense...can it be debited to director's personal account (drawings).

They should be debited to directors personal account if the trip was not official and FBT will not be applicable

and if director was on official trip then FBT willbe applicable

As long as the company is reimbursing the expense of Travel.  FBT should be applicable whether the travel is personal or official. Can anyone clarify the same?