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FBT on Expenses Abroad

1766 views 6 replies

Dear Members

Please tell me whether FBT should be levied on Expenses Incurred abroad like telephone exp , Car running expenses etc of a Foreign Branch, the claim of which is made against Indian Parent Company's Profit in consolidated finanacial statements.

Sanjeev

(C.A)

Replies (6)
Employer must be there The Employer who incurs is liable to FBT In the present case FBT liability will go along with the income tax liability of the income of the foriegn branch in India
FBT Will be laible and paid by the employer
Dear Friends In the partnership firm, partner's travelling expenses and telephone expenses which related to his business attract F.B.T ?????????
If there is no employee in the business FBT does not attract.
Dear Ready Give any references because of we think that it's attract deemed FBT
Dear Sanjeev, Any expense incurred outside india on the employee working in foreign branch is not taxable in india. However, if an indian employee is on visit to foreign branch, expenses incurred by him during his stay will be liable to fbt, provided expense incurred should be the one which are mentioned in those fbt section. Also, if employee of foreign branch is on visit to india, then also expenses incurred will be liable for fbt.


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